Asian shares skid as bullish Fed take investors by surprise
Chinese shares skidded after the official Xinhua news agency said that country's stock regulator will inspect the stock margin trading business of 46 companies, amid concerns that the country's stock markets are becoming over-leveraged and vulnerable to a crash which could strain the financial system.
Four voting members from regional Feds at the policy committee this year are considered less hawkish than last year's rotating members.
On Wednesday, the Dow Jones industrial average fell 1.1 percent to a six-week low while the S&P 500 lost 1.4 percent.
"The market liquidity is relatively low now, considering it is getting toward the end of the month," he added.
The diverging monetary policy outlooks helped the U.S. dollar recoup some losses this week. The dollar index, which tracks the greenback against a basket of major currencies, gained about 0.3 percent on the day to 94.751.
Against the yen, the dollar added about 0.3 percent to 117.91 yen, while the euro slipped about 0.2 percent to $1.1271 from a high of $1.1423 hit on Tuesday. Signs of tension in Greek financial markets adding to downward pressure on the single currency.
As share prices eased, U.S. bond yields have fallen, with the 30-year yield hitting a record low of 2.273 percent on Wednesday.
The 10-year yield stood at 1.734 percent, not far from this month's low of 1.698 percent, which was its lowest level since May 2013.
U.S. crude futures edged up about 0.2 percent to $44.53, having sunk as low as $44.08 on Wednesday, their lowest since April 2009.
(Editing by Edwina Gibbs & Shri Navaratnam)