SINGAPORE — Shares in Japan looked set to bounce at the Friday open following heavy losses in the previous trading day, as investors continue to assess the impact of a potentially faster-than-expected policy tightening by the U.S. Federal Reserve.

The Nikkei futures contract in Chicago was at 28,760 while its counterpart in Osaka was at 28,690. That compared against the Nikkei 225’s last close at 28,487.87, after it dropped nearly 3% on Thursday.

Shares in Australia were up in morning trade, with the S&P/ASX 200 rising 0.9%.

Markets have been spooked and fallen sharply since minutes from the Fed’s December meeting, released earlier this week, showed officials at the central bank ready to aggressively dial back policy help.

The yield on the benchmark U.S. 10-year Treasury note rose as high as 1.75% on Thursday, last sitting at 1.7281% — still much higher than the 1.51% level it ended 2021 at. Yields move inversely to prices.

Overnight on Wall Street, the Dow Jones Industrial Average fell 170.64 points to 36,236.47 while the S&P 500 shed about 0.1% to 4,696.05. The Nasdaq Composite slipped 0.13% to about 15,080.87.

The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 96.242 — holding above levels below 96 seen earlier this week.

The Japanese yen traded at 115.86 per dollar, stronger than levels above 116 against the greenback seen yesterday. The Australian dollar was at $0.7163 after yesterday’s drop from above $0.72.