Hong Kong • World stock markets struggled Friday as the euphoria faded from the Fed's promises of prolonged low rates to boost growth.
Markets were subdued in lackluster trading, with Japanese and Australian benchmarks moving lower after big gains the previous day.
The fluctuations reflect investors' cautious mood heading into summer plus lingering concern over the possible widening of the turmoil in Iraq and uncertainty about the U.S. economy's resilience.
Markets got an earlier boost from Federal Reserve Chair Janet Yellen's pledge this week that short-term rates would not rise from record lows anytime soon.
"Both U.S. and Asian markets have been much more subdued after the FOMC meeting and it seems that once the dust settles the big moves in a number of assets were predominantly based on position re-adjustment than anything else," said Chris Weston of IG Markets in Melbourne.