Asia stocks set for weekly loss as Fed rate angst simmers

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Asia-Pacific stocks retreated on Friday, slumping toward a second weekly loss as investors fretted about the potential for further Federal Reserve tightening and the effect on the economy.

U.S. equity futures slipped 0.12%, after the S&P 500 sank 0.88% overnight. German DAX futures pointed to a 0.9% decline at the restart, and U.K. FTSE futures signaled a 0.44% loss.in a podcast on the Richmond Fed's website, adding that he felt the decline so far had been "distorted" by some falling goods prices."Where is the pain trade? I'd argue the market would be more surprised by an upside surprise than a downside surprise" for the U.S.

At the start of this week, investors had been cheered after Fed Chair Jerome Powell refrained from striking a more hawkish posture following after a much stronger than expected jobs report at the end of last week. "If rates go past that five, five-and-a-quarter percent range that the Fed has previously indicated, markets are definitely not priced for that - absolutely not."The two-year Treasury yield eased slightly to around 4.49% in Tokyo, after touching the highest since Jan. 6 at 4.514% overnight. The 10-year yield edged down to around 3.67% after bumping around 3.96% mid-week, also the highest since Jan. 6.

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