Markets retreat as Federal Reserve policy outlook dims risk appetite, dragging tech futures and regional equities lower.
Asian equities declined Friday, erasing gains from Wall Street’s prior session as hawkish Federal Reserve commentary weighed on sentiment. Tech sector weakness and sliding futures added pressure, while the Japanese yen breached 161 against the dollar, extending its recent slide.
The retreat followed a mixed overnight session in U.S. markets, where optimism over a potential U.S.-Iran deal briefly lifted sentiment before Fed officials’ remarks tempered expectations for near-term rate cuts. Oil prices remained under pressure, heading for a 10% weekly decline amid broader risk-off moves.
Regional benchmarks fell across the board, with technology and export-driven stocks leading losses. The yen’s drop to multi-decade lows reflected persistent yield differentials and diverging monetary policy paths between Japan and the U.S.