CANBERA (dpa-AFX) - Asian stocks ended mostly lower on Thursday after a hawkish commentary from the U.S. Federal Reserve and amid an ongoing geopolitical unrest in Middle East.
The Federal Reserve Open Markets Committee's economic projections showed unemployment and inflation rising higher than officials previously thought due to tariff-related uncertainties.
Elsewhere, the Trump administration offered few clues about whether the U.S. will join Israel's offensive aimed at destroying Tehran's nuclear program.
The dollar was firm in Asian trade, sending gold prices down below $3,360 per ounce. Oil prices rose about 1 percent on fears that a wider regional conflict could disrupt Middle East oil exports.
China's Shanghai Composite index fell 0.79 percent to 3,362.11 as the latest stimulus announcements made at Shanghai's Lujiazui Forum fell short of expectations.
Hong Kong's Hang Seng index tumbled 1.99 percent to 23,237.74, with tech and property stocks leading declines amid Trump's Iran rhetoric.
Japanese markets fell sharply, retreating from a four-month high hit the previous day as the Israel-Iran conflict entered its seventh day.
The Nikkei average fell 1.02 percent to 38,488.34, snapping a three-day winning streak. The broader Topix index closed 0.58 percent lower at 2,792.08. Nippon Steel jumped 2.3 percent after closing its nearly $15 billion acquisition of U.S. Steel.
Seoul stocks recovered from an early slide to end modestly higher, as auto and chip-related stocks gained ground, offsetting losses in the energy and financial sectors.
The Kopi average edged up by 0.19 percent to 2,977.74 after Bank of Korea (BOK) Gov. Rhee Chang-yong said a supplementary budget would make a significant contribution to economic growth while having a limited impact on inflation.
Australian markets ended slightly lower as new data showed the job market unexpectedly shrank in May and the unemployment rate remained steady, reflecting a cooling labor market that could provide more room for the Reserve Bank to cut rates.
The benchmark S&P/ASX 200 finished marginally lower at 8,523.70 after a choppy session, dragged down by miners and gold stocks. The broader All Ordinaries index settled 0.19 percent lower at 8,741.40.
Across the Tasman, New Zealand's benchmark S&P/NZX-50 index dropped 0.46 percent to 12,569.05 despite GDP data for the March quarter coming in slightly ahead of market expectations.
U.S. stocks ended narrowly mixed overnight as the Federal Reserve left interest rates unchanged, forecast two more quarter-point cuts for the year, lowered the 2025 GDP growth forecast and raised the core inflation outlook to 3.1 percent.
Chair Jerome Powell signaled that officials would wait to see the impact of President Trump's tariffs on inflation before proceeding on rates.
'Ultimately, the cost of the tariff has to be paid, and some of it will fall on the end consumer. We know that because that's what businesses say. That's what the data say from the past,' Powell told a news conference.
In economic releases, the latest weekly jobless claims and housing data point to softening economic activity.
The tech-heavy Nasdaq Composite inched up 0.1 percent while both the Dow and S&P 500 finished marginally lower.
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