Berliner Boersenzeitung - Stock markets fall after Fed-fuelled rally

In New York, the Dow and the broad-based S&P500 index opened in the red following records the previous day in the wake of the Federal Reserve's 50-basis-point rate reduction and pledge of further cuts as inflation cools.

"Some profit-taking as we end the week is to be expected" following the rallies, said Kathleen Brooks, research director at trading platform XTB.

There had been fears the move could signal officials were worried about the economy and were behind the curve in easing policy.

But data Thursday showing jobless claims at their lowest since May suggested the United States was heading for a soft landing, rather than recession.

Asia's main stock markets closed out the week mostly higher after Thursday's advances.

The yen reversed earlier gains after the Bank of Japan decided against another hike to borrowing costs.

The BoJ began to move away from its long-running policy of ultra-low rates in March -- which saw the first increase in 17 years -- but a second hike in July sent shockwaves through markets and caused a surge in the yen.

Bets on more tightening -- and a period of cutting by the Fed -- has weighed on the dollar while supporting the yen this week.

In Europe, Frankfurt stocks fell a day after hitting a record high, while Paris and London were also in the red in afternoon deals.

London's FTSE 100 index retreated as official data Friday showed UK debt has reached 100 percent of Britain's annual gross domestic product and a closely watched index revealed a big drop in UK consumer confidence this month.

The Bank of England, meanwhile, held its interest rate at 5.0 percent in a decision Thursday.

Gold hit a fresh record high above $2,610 an ounce on the prospect of lower US borrowing costs, which makes the precious metal, seen as a haven investment, more attractive.

"Geopolitical risks, such as ongoing conflicts in Gaza, Ukraine, and elsewhere, will ensure to sustain gold's safe-haven demand," said Fawad Razaqzada, market analyst at City Index and Forex.com.

- Key figures around 1345 GMT -

New York - Dow: DOWN 0.2 percent at 41,933.94 points

New York - S&P 500: DOWN 0.2 percent at 5,700.37

New York - Nasdaq: DOWN 0.1 percent at 17,991.35

London - FTSE 100: DOWN 1.2 percent at 8,230.46

Paris - CAC 40: DOWN 1.1 percent at 7,532.71

Frankfurt - DAX: DOWN 1.3 percent at 18,763.22

Tokyo - Nikkei 225: UP 1.5 percent at 37,723.91 (close)

Hong Kong - Hang Seng Index: UP 1.4 percent at 18,258.57 (close)

Shanghai - Composite: FLAT percent at 2,736.81 (close)

Pound/dollar: UP at $1.3289 from $1.3281 on Thursday

Euro/dollar: DOWN at $1.1160 from $1.1161

Dollar/yen: UP at 143.78 yen from 142.57 yen

Euro/pound: DOWN at 83.97 pence from 84.03 pence

West Texas Intermediate: DOWN 0.7 percent at $70.67 per barrel

Brent North Sea Crude: DOWN 0.8 percent at $74.32 per barrel

(K.Müller--BBZ)