Asian shares fell, tracking Wall Street’s losses as the U.S. Federal Reserve looked set to maintain its path of interest rate hikes, although signs it may be less aggressive in tightening gave investors some cause for hope.
The dollar rose overnight after the Fed’s July minutes pointed to a steady course of rate hikes ahead.
MSCI’s broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) was down 0.4%, after U.S. stocks ended the previous session with mild losses. The index is up 1.3% so far this month.
The Fed’s minutes for its July meeting showed it was contemplating paring back the pace of future rate hikes in line with a slowdown in inflation but saw “little evidence” yet that pressures were easing.