against a basket of currencies in early European trading.
It fell 0.2 percent against the yen to 118.73 yen, while the euro was up 0.3 percent at $1.1375 Sterling too, was up by a similar margin at $1.5502.
In China, the world’s second largest economy, the closely watched flash HSBC/Markit Purchasing Managers’ Index (PMI) inched up to 50.1, above the 50-point level that separates growth in activity from a contraction on a monthly basis.
It beat consensus estimates for a reading of 49.5 even as China’s manufacturers still face considerable risks from weak foreign demand and deepening deflationary pressures.
“We believe more policy easing is still warranted at the current stage to support growth,” said Qu Hongbin, HSBC’s chief economist in China.
MSCI’s broadest index of Asia-Pacific shares outside Japan had ended up 0.85 percent, though Japan’s Nikkei snapped a five-day winning streak after hitting a 15-year high in the previous session.
A backdrop of weakening global growth has been keep investors on the edge about the Fed’s plans, with some worrying a premature start to the US rate hike cycle could dent momentum in the US economy even as Europe and China continue to struggle.
Because Yellen gave no sign of an imminent rate increase, investors piled back into US Treasuries, sending benchmark 10-year yields back below 2 percent and two-year yields to 2-1/2-week lows.
News on Tuesday that Eurozone partners had approved Greece’s reform plan, a requirement for Athens to receive a four-month extension to its bailout, continued to help European bond markets, although Greece itself saw its yields nudge slightly higher.
Among commodities, oil overcame pressure from expectations that this week will show US crude inventories rising again, garnering support from news of a shutdown of Libyan oilfields.
Brent added about 0.5 percent to $58.98 a barrel, though US crude CLc1 edged down slightly to $49.19.
Gold added about 0.9 percent on the day to $1,211.30 per ounce as it inched off a seven-week low.