Global Markets React to Fed Comments, Middle East Tensions, and Potential Iran Strike

Comments from a U.S. Fed official about potential interest rate cuts punctured the positive mood in Asian markets, despite a decline in the dollar and U.S. bond yields. Geopolitical tensions, including President Biden's threat to change policy towards Israel and U.S. Treasury Secretary Yellen's meetings in China, are also impacting market sentiment. The Reserve Bank of India's policy meeting and inflation data from the Philippines and Thailand are key events on Friday, with all 56 economists in a Reuters poll expecting the repo rate to be kept unchanged at 6.50%. Meanwhile, Indian Prime Minister Narendra Modi aims to double the economy and exports this decade.