"Global Markets React to Fed's Powell Reconsidering Rate Cuts and Geopolitical Tensions"

Asian shares were mixed as Treasury yields rose to five-month highs and the dollar strengthened after Federal Reserve Chair Jerome Powell indicated a rethink on U.S. rate cuts due to recent inflation data. The yen hit fresh 34-year lows, while the New Zealand dollar gained on strong inflation data. Markets have reduced expectations for Fed rate cuts to less than two, with the first cut expected in September. The global economy is forecasted for slow but steady growth, while geopolitical tensions in the Middle East persist. The dollar index reached a 5-1/2-month high, and Asian bonds followed the sell-off in Treasuries. Oil prices slipped as demand concerns outweighed Middle East tension, while gold prices remained near record highs.