TOKYO, July 6 Reuters AsiaPacific stock markets fell on Thursday, extending a decline in global equities, after the U.S. Federal Reserve confirmed its hawkish stance, while an escalating trade battle between China and the United States also dampened sentiment.

U.S. 10year Treasury yields climbed to a fresh fourmonth high in Tokyo trading, and the dollar extended its rise against major peers.

An exception was the yen, which strengthened against its U.S. rival as traders fretted about the potential for currency intervention.

Japan39;s Nikkei share average slumped 1.6, continuing its retreat from 33year highs.

Hong Kong39;s Hang Seng tumbled more than 3, while mainland blue chips lost 0.7.

Australia39;s stock benchmark slid 1.2 and Taiwan shares retreated 1.6.

MSCI39;s broadest index of AsiaPacific shares dropped 1.3, following a 0.4 decline for the world index on Wednesday.

U.S. Emini stock futures pointed to a 0.4 lower restart for the SP 500, following its overnight 0.2 drop.

U.K. FTSE and German DAX futures each fell about 0.4

While almost all Fed officials agreed to hold interest rates steady last month, minutes of the meeting released on Wednesday showed the vast majority expected policy would eventually need to tighten further.

Money market traders place 85 odds on a quarter point hike on July 26, and about a 5050 chance of another by November.

Meanwhile, U.S. Treasury Secretary Janet Yellen begins a trip to China just as Beijing restricted exports on…