SYDNEY: Asian stocks stepped back from near eight-month highs on Thursday and the dollar eased as cautious European and U.S. central banks reinforced investors' worries about the slowing global economy and trade protectionism.
Australian shares also lost ground, pressured by political uncertainty after the prime minister called a national election for May 18. "If, as we expect, growth in the euro-zone continues to disappoint over the coming months, we think that ECB policymakers will adopt an even more accommodative stance," analysts at Capital Economics wrote in a note.
In currencies, the British pound held on to gains after European leaders agreed to extend the deadline for UK to leave the union to the end of October, averting a potential crash out of the bloc on Friday with no divorce deal but threatening more months of uncertainty.