(fxcue news) - Asian stocks were deep in the red on Thursday, the yield on benchmark U.S. Treasury yields touched a seven-month high, the dollar index jumped to a two-year high and gold held below $2,600 per ounce after the U.S. Federal Reserve signaled a slower pace of easing next year amid ongoing upside inflation risks. Analysts have warned that policies proposed by U.S. President-elect Donald Trump, including plans for tax cuts and widespread import tariffs, could put upward pressure on prices and keep interest rates higher for longer. Oil prices also traded lower in Asian trade as the dollar surged amid the Fed's shift in policy guidance. China's Shanghai Composite index was down 0.3 percent at 3,371 after reports emerged that U.S. authorities are considering a ban on China's TP-Link Technology Co over potential national security concerns. Hong Kong's Hang Seng index dropped nearly 1 percent, with financials and technology stocks coming under selling pressure. Japan's Nikkei fell 1 percent and the yen hovered near a one-month low against the dollar as investors braced for the looming Bank of Japan's interest-rate decision and comments from BOJ Governor Kazuo Ueda. There are minimal expectations for a rate hike, with investors looking for clues on the timing and pace of rate hikes next year. Seoul stocks tumbled, with the Kospi average falling 1.8 percent, dragged down by heavyweight technology stocks. Australia's benchmark S&P/NZX-50 index was down 1.9 percent after having reached its lowest level in over a month earlier. Financials, gold miners and technology stocks were among the hardest hit. Across the Tasman, New Zealand's benchmark S&P/NZX-50 index dropped 0.8 percent. U.S. stocks succumbed to heavy selling pressure overnight after the Fed delivered a 25-bps rate cut as expected but revised its projections to signal just two interest rate cuts next year compared to the four previously forecast, citing stubbornly high inflation. The Dow plummeted 2.6 percent to extend its losing streak to ten straight sessions and hit its lowest closing level in over a month. The S&P 500 slumped 3 percent to a one-month closing low and the tech-heavy Nasdaq Composite plunged 3.6 percent. European stocks ended mostly higher on Wednesday after the release of U.K. and Eurozone inflation data and ahead of the Fed's final rate decision of the year. The pan European STOXX 600 rose 0.2 percent to end higher for the first time in four days. The German DAX finished marginally lower while France's CAC 40 gained 0.3 percent and the U.K.'s FTSE 100 edged up marginally.