Asia Markets: Asian markets pull back on Fed’s stance, lower expectations for trade deal

Asian markets were mostly lower in early trading Friday, as investors took in the effects of comments by Fed Chairman Jerome Powell and the latest round of U.S.-China trade talks.

Powell on Wednesday disappointed traders by suggesting there would not be an interest-rate cut in the near future, and said lower inflation was “transitory.” That sparked a selloff on Wall Street, which continued into Thursday.

“Equity markets were looking for so much more from the Fed and were shocked when Chair Powell said the Fed did not see a convincing case to move rates in either direction, but tanked when he uttered the ominous ‘transitory’ word,” Stephen Innes, head of trading at SPI Asset Management, said in a note Thursday.

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