Asian Shares Slip, Dollar Up on Higher Rates Outlook

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MSCI Asia exJapan down 0.1; Nikkei flat

European stock futures point to marginally lower open

Treasury yields lower; dollar clings on to gains

Gold gains ground, oil drops

SHANGHAI, June 18 Reuters Asian shares extended losses and the dollar crept up to near twomonth highs on Friday after the U.S. Federal Reserve this week projected higher interest rates in 2023.

While the Fed indicated no clear end to supportive policy measures such as bond buying, signals of fasterthanexpected rate hikes underscored its inflation concerns as the U.S. economy recovers from the COVID19 pandemic.

Its a difficult call, but I think what is pretty obvious is that the inflation genie is starting to sneak out of the bottle, and that will be a major driver of interest rates in the short to medium term, said James McGlew, executive director of corporate stockbroking at Argonaut in Perth.

European stock futures pointed to small declines at the open, with panregion Euro Stoxx 50 futures down 0.02, DAX futures falling 0.06, FTSE futures inching 0.01 lower, and CAC 40 futures easing 0.02.

In afternoon trade in Asia, MSCIs broadest index of AsiaPacific shares outside Japan was off 0.1, erasing earlier gains to extend declines into a fifth session.

Chinese bluechip Ashares swung between gains and losses before ending flat, while Taiwan shares lost 0.41. Japans Nikkei fell 0.19.

Gold prices, which plunged following the Fed comments on Wednesday, edged higher but were still set for their…

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