Asian shares surge, dollar slips after Fed hints at rate pause

SINGAPORE – Asian shares spiked on Thursday and the dollar slid after the U.S. Federal Reserve hinted it could pause interest rate rises following turmoil in the banking sector, though it also reiterated its commitment to fighting sticky inflation.

In a widely expected move, the Fed raised interest rates by 25 basis points, but it recast its outlook to a more cautious stance as a result of the banking stress.

MSCI’s broadest index of Asia-Pacific shares outside Japan rose 1 percent to touch a two-week high of 515.62. The index was on track for its best week in more than two months.

Focus now shifts to the Bank of England, with investors expecting a quarter-percentage-point i…

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