By Stanley White and Katanga Johnson
TOKYO/WASHINGTON, Aug 28 (Reuters) - Longer-dated Treasury yields and the dollar rose in Asia on Friday after the U.S. Federal Reserve shifted its policy framework to place more emphasis on boosting economic growth and less on worries about letting inflation run too high.
The 10-year U.S. Treasury US10YT=RR yield rose to 0.7870%, the highest since June 10, which caused the yield curve to steepen, reflecting the Fed's tolerance for higher inflation.
The dollar hit a two-week high against the yen JPY=D3 but held steady against most other major currencies. Gold prices XAU= erased early gains and edged higher.
MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS bounced between gains and losses in choppy trade. U.S. stock futures ESc1 rose 0.25%.
Australian stocks .AXJO fell 0.85%. Shares in China .CSI300 rose 0.33%, while Tokyo stocks .N225 gained 0.16%.
Oil futures fell due to easing concern about the impact of a hurricane that struck the centre of the U.S. oil industry.
Markets swirled after Fed Chairman Jerome Powell laid out a policy that aims for 2% inflation on average so that too low a pace would be followed by an effort to lift inflation "moderately above 2% for some time."
Powell's comments were widely expected, but some traders in Asia were disappointed that the Fed did not reveal more details about how the new framework will work or provide any clues to what it will do at its next policy meeting.
"Average inflation had been talked up quite a bit, so we knew this was coming," said Yukio Ishizuki, foreign exchange strategist at Daiwa Securities in Tokyo.
"But Powell really didn't reveal much beyond that. Some people who were expecting a clearer steer on policy or some kind of cap on bond yields are left disappointed."
Dallas Fed President Robert Kaplan later said the new policy framework is not a commitment to future action, which contributed to confusion about how it will work, Daiwa's Ishizuki said.
On Wall Street, the Dow Jones Industrial Average .DJI rose 0.57%, the S&P 500 .SPX gained 0.17%, both setting new intraday highs.
The Nasdaq Composite .IXIC dropped 0.34%.
Stocks also rose on news that Abbott Laboratories ABT.N won U.S. marketing authorization for a COVID-19 portable antigen test that can deliver results in 15 minutes and will sell for $5. Abbott's shares rose 7.9%.
The dollar rose against the yen but weakened slightly against the Australian dollar AUD=D3, the British pound GBP=D3 and the yuan CNY=CFXS.
Spot gold XAU= advanced 0.32% to $1,935.07 as traders considered the Fed's new stance on inflation.
U.S. crude CLc1 futures fell 0.1% to $42.98 a barrel. Brent crude LCOc1 futures fell to $45.07 a barrel after U.S. refiners avoided the worst of a storm that struck the U.S. Gulf Coast.
Global currencies vs. dollar http://tmsnrt.rs/2egbfVh
MSCI All Country Wolrd Index Market Caphttp://tmsnrt.rs/2EmTD6j
(Reporting by Stanley White in Tokyo and Katanga Johnson in Washington; Editing by Richard Chang & Shri Navaratnam)
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