SYDNEY (Reuters) – Asian shares retreated on Thursday as a dismal outlook from the U.S. Federal Reserve challenged market optimism on the international economy, while bonds rallied on speculation that yet more stimulus would be needed to guarantee recovery.
FILE PICTURE: A worker of the Tokyo Stock Market (TSE) operates at the bourse in Tokyo, Japan, February 6,2018 REUTERS/Toru Hanai
After a slow start, MSCI’s broadest index of Asia-Pacific shares outside Japan slipped 1.4%, likely putting an end to a 10- session winning streak.
Japan’s Nikkei slid 2.1%in its largest everyday loss in five weeks, while Chinese blue chips alleviated 1.0%.
E-Mini futures for the S&P 500 fell 1.5%to extend an over night pullback on Wall Street, while EUROSTOXX 50 futures lost 2.2%and FTSE futures 1.7%.
In a truth check to the stock market’s current euphoria, the Fed predicted the U.S. economy would diminish