Asian stocks hit a two-month high on Thursday, and the dollar rose to new peaks against the yen and yuan after the Federal Reserve paused rate hikes while signaling more, highlighting the contrast with more dovish policy outlooks in Asia.
The European Central Bank is expected to deliver its eighth straight rate hike later in the day, taking borrowing costs to two-decade highs.
Investors awaited the decision as the euro traded at $1.0816. Meanwhile, China cut another key policy rate amid fresh signs that its economy is stumbling. The yen fell about 0.9% to a six-month low of 141.43 per dollar, and yuan fell to a six-month trough of 7.1819.
