The dollar bounced, long-dated bond yields were up and Asian stocks rose after the U.S. Federal Reserve announced a 50-basis-point rate cut and flagged that its easing cycle would be measured.

The S&P 500 hit a record high overnight and although it closed slightly lower, futures rose 0.67% in the Asia day. Nasdaq futures were up 1%. Japan's Nikkei jumped 2.5% and stock markets in Australia and Indonesia hit record highs.

The Fed lowered its window for the benchmark policy rate by 50 basis points to 4.75-5%, where traders had been leaning before the decision. The dollar immediately hit a two-and-a-half-year low on sterling, but then recoiled sharply.

It was up nearly 1% to 143.55 yen early on Thursday and well off lows on the euro at $1.1097.

Ten-year Treasury yields have climbed nearly eight basis points from a day earlier to 3.719%, while gold shot to a record high just shy of $2,600 an ounce, before easing back to steady at $2,559.

The Fed's cut is expected to support spending and the U.S. economy, and encourage other central banks to cut rates.

"The key was never going to be about 25 or 50, it's all about the path forward and I think they've outlined a view where the economy is still doing pretty well," said BNZ strategist Jason Wong in Wellington. "This wasn't a panicked 50 (bp) cut."

Policymakers' adjusted their median rates projection downwards, compared with their outlook in July, but Fed chair Jerome Powell emphasised flexibility.

"I do not think that anyone should look at this and say, oh, this is the new pace," Powell told reporters after the outsized cut was announced.

"We're recalibrating policy down over time to a more neutral level. And we're moving at the pace that we think is appropriate, given developments in the economy."

MSCI's broadest index of Asia-Pacific shares outside Japan climbed 0.3%. Hong Kong and China logged broad gains on the view that Beijing is more likely to roll out stimulus now that the Fed has moved.

Chinese bond yields fell.

South Korean markets returned from holidays with a thud after a downbeat Morgan Stanley note, which halved SK Hynix's target price, prompted selling in chip stocks. SK Hynix shares tumbled 8.7% and Samsung fell 3.1%.

Oil prices fell and benchmark Brent crude futures were last down 0.3% at $73.42 a barrel.

Around the region lower U.S. rates in theory give emerging markets leeway to cut their policy rates to support growth. Bank Indonesia moved a few hours before the Fed, with a 25-basis-point cut on Wednesday.

The Bank of England meets later on Thursday and is seen holding rates at 5%, especially after inflation figures showed services inflation picked up in August. The Bank of Japan sets policy on Friday, and is expected to stand pat but line up future hikes, perhaps as soon as October.