Asian markets mostly fell Thursday after minutes from the Federal Reserve's most recent policy meeting showed officials saw a US recession at the end of the year, while inflation data could not temper expectations of another interest rate hike, APA-Economics reports citing Zawya.
A smaller-than-forecast rise in prices last month provided some much-needed hope to investors that a year of monetary tightening was finally showing results, but analysts said the details showed there was still some way to go.
Wall Street swung after the release but turned negative towards the end of the day after the Fed minutes, which highlighted concerns about the impact of last month's banking crisis, in which three US lenders went under and Credit Suisse was taken over.
"The staff's projection at the time of the March meeting included a mild recession starting later this year, with a recovery over the subsequent two years," according to the minutes of the Fed policy meeting, where rates were lifted by 25 basis points.
They also said "some additional policy firming may be appropriate" to help bring inflation down to the Fed's target of two percent.
Oil prices inched lower, but held most of Wednesday's two-percent rally fuelled by a drop in US inventories and supply issues from Iraqi Kurdistan.
The two main contracts are now sitting around levels not seen since November, while traders are awaiting an outlook update from OPEC later in the day.
- Key figures around 0230 GMT -
Tokyo - Nikkei 225: UP 0.9 percent at 28,108.67 (break)
Hong Kong - Hang Seng Index: DOWN 0.8 percent at 20,149.22
Euro/dollar: UP at $1.0999 from $1.0995 on Wednesday
Pound/dollar: UP at $1.2496 from $1.2485
Euro/pound: UP at 88.04 pence at 88.03 pence
Brent North Sea crude: DOWN 0.2 percent at $87.16 per barrel
New York - Dow: DOWN 0.1 percent at 33,646.50 (close)
London - FTSE 100: UP 0.5 percent at 7,824.84 (close)
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