TOKYO, July 6 (Reuters) – Asia-Pacific stock markets fell on Thursday, extending a decline in global equities, after the U.S. Federal Reserve confirmed its hawkish stance, while an escalating trade battle between China and the United States also dampened sentiment.
U.S. 10-year Treasury yields climbed to a fresh four-month high in Tokyo trading, and the dollar extended its rise against major peers.
Japan’s Nikkei share average (.N225) slumped more than 1%, continuing its retreat from 33-year highs.
Hong Kong’s Hang Seng (.HSI) fell 0.9%, while mainland blue chips (.CSI300) edged 0.2% lower.
Australia’s stock benchmark (.AXJO) slid 1% and Taiwan shares (.TWII) retreated 0.7%.
MSCI’s broadest index of Asia-Pacific shares (.MIAP00000PUS) dropped 0.7%, after a 0.4% slide for the world index (.MIWO00000PUS) on Wednesday.
U.S. E-mini stock futures pointed to a 0.1% lower restart for the S&P 500 (.SPX), following its overnight 0.2% decline.
While almost all Fed officials agreed to hold interest rates steady last month, minutes of the meeting released on Wednesday showed the vast majority expected policy would eventually need to tighten further.
Money market traders place 85% odds on a quarter point hike on July 26, and about a 50/50 chance of another by November.
Meanwhile, U.S. Treasury Secretary Janet Yellen begins a trip to China just as Beijing restricted exports on metals used in semiconductors, adding that the controls were
Stocks slide, US yields climb amid hawkish Fed, China tensions
