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By Nichola Saminather
SINGAPORE (Reuters) - Asian stocks crawled higher in early trade on Friday, set for its best week since September, while the dollar continued the slide that began after the Federal Reserve indicated it was unlikely to speed up monetary tightening.
The dollar index <.DXY>, which tracks the greenback against a basket of six trade-weighted peers, retreated 0.1 percent to 100.26. It hit a five-week low on Thursday, and is down almost 1 percent for the week.
The dollar was steady at 113.32 yen
While the Fed raised interest rates by 25 basis points on Wednesday, it kept to its original forecast of three rate hikes this year, disappointing investors who were expecting four.
U.S. Treasury yields, which slid after the decision, staged a recovery on Thursday and continued to rise on Friday.
The 10-year yield was at 2.5402 percent in early trade, from its last close of 2.524.
"The story in global markets over the past 24 hours has centred on a broad-based tightening of monetary policy conditions (and the perception of future tightening)," Chris Weston, chief market strategist at IG in Melbourne, wrote in a note.
MSCI's broadest index of Asia-Pacific shares outside Japan <.MIAPJ0000PUS> rose 0.1 percent, set to end the week with a 3.3 percent gain, its biggest weekly increase since September.
Japan's Nikkei <.N225> lost 0.4 percent, and is poised for a 0.5 percent loss for the week.
MSCI's all-country world stock index <.MIWD00000PUS>, which hit an all-time high on Thursday, was little changed on Friday, on track to end the week 1.3 percent higher.
Overnight, Wall Street was subdued following strong gains after the Fed's rate decision. The Nasdaq <.IXIC> was flat, while the Dow <.DJI> and the S&P 500 <.SPX> posted losses.
But European shares were upbeat following the election victory of Dutch Prime Minister Mark Rutte, who defeated anti-immigration, anti-European Union rival Geert Wilders.
In commodities, oil prices rose slightly, supported by a weaker dollar.
(Editing by Jacqueline Wong)
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)