March 21 (Reuters) - A look at the day ahead in Asian

markets.

Asian markets open on Thursday in the slipstream of U.S.

markets' positive reaction to the Federal Reserve's signal that

interest rates will still be cut by 75 basis points this year,

and not the 50 that many investors had been bracing for.

Wall Street's three main indexes closed between 0.9% and 1.2%

higher on Wednesday, Treasury yields fell and the dollar

slipped, a mix that should point to early gains in Asia.

This comes against a global backdrop of high asset prices,

strong risk appetite and low volatility - global stocks are near

record levels, FX vol is the lowest since September 2021, and

U.S. high yield bond spreads are the tightest in over two years.

Stacked up like that, however, maybe the upside is limited

from here - the MSCI Asia ex-Japan index has shed around 2.5% in

the past week.

While the 2024 path for U.S. monetary policy is the biggest

immediate driver for Asian markets, the regional economic

calendar on Thursday is not without potential fireworks.

Fourth-quarter GDP data from New Zealand, unemployment

figures from Australia, trade numbers from Japan and a

sprinkling of PMI reports are on tap too.

Once again, all eyes will be on the yen, which remains on

the slide following the Bank of Japan's historic rate hike and

policy shift this week.

The Japanese currency is its weakest ever against the

offshore Chinese yuan, its lowest against the onshore yuan in

over 30 years, a 16-year high against the euro and a whisker

away from lows not seen against the dollar since 1990.

The yen managed to claw back some of its losses late in U.S.

trading on Wednesday as the dollar fell more broadly. Activity

on Thursday promises to be frenetic as Asia takes its first

opportunity to trade the Fed and BOJ.

Rates futures markets are currently pricing in a first Fed

rate cut in June, and unsurprisingly in light of the Fed's new

projections, 75 bps of easing this year.

Traders forecast the BOJ raising another 10 bps rates in

September and again in December. Nikkei newspaper reported on

Wednesday that the next hike is more likely to come in October.

Elsewhere on Thursday New Zealand is expected to narrowly

avoid recession with fourth quarter GDP seen rising 0.1%,

following a surprise 0.3% contraction in the previous

three-month period.

The kiwi dollar has been a relatively poor performer against

the U.S. dollar this year as traders bet that the Reserve Bank

of New Zealand will cut rates by more than 100 bps this year.

The first purchasing managers index (PMI) reports for March

will also be released on Thursday in the shape of flash readings

from Japan, Australia and India.

Here are key developments that could provide more direction

to markets on Thursday:

- New Zealand GDP (Q4)

- Australia unemployment (February)

- Japan, Australia, India flash PMIs (March)