Asia: Markets track post-Fed surge on Wall Street, but caution urged

ASIAN markets rose on Thursday following a surge on Wall Street fuelled by hopes that the Federal Reserve could slow its pace of inflation-fighting interest rate hikes.

The dollar also struggled to bounce back from a sell-off – sitting at a three-week low against the yen – that came in response to comments by bank chief Jerome Powell suggesting its next super-sized increase could be its last.

However, analysts cautioned that the initial joy, which sent New York’s three main indexes soaring, could be short-lived as the global economy continued to face several headwinds and inflation would not likely come down quickly.