Market Volatility Continues as Asian Stocks Slip and Dollar Sell-Off Eases

Asian stocks retreated from 2-1/2-month highs as investors tempered their enthusiasm about the prospect of an end to U.S. interest rate hikes. The dollar found support after sliding last week, while the yen lifted from multi-month lows. The Federal Reserve's promise to "proceed carefully" was not seen as new information. Interest rate futures markets see almost no chance of further rate hikes and price in about 90 basis points of rate cuts through 2024. The Bank of Japan is expected to end its negative interest rate policy next year, potentially raising its policy rate when other major central banks are cutting.