* Asian stock markets: https://tmsnrt.rs/2zpUAr4
* Fed cuts rates, but Powell's tone disappoints doves
* BOJ on hold, but other central banks are easing policy
* Oil futures drift higher as geopolitical risks remain
By Stanley White
TOKYO, Sept 19 (Reuters) - Asian shares turned lower onThursday after the U.S. Federal Reserve cut interest rates asexpected but signalled a higher bar to further policy easings.
Treasury yields rose broadly and the curve flattened as FedChairman Jerome Powell took a cautious approach to any furtherreductions in borrowing costs, while division among centralbankers has increased uncertainty over how much further ratesmight fall.
MSCI's broadest index of Asia-Pacific shares outside Japanfell 0.36%. Hong Kong shares shed 0.96%,but Japan's Nikkei rose 1.01%.
The yen rose from a seven-week low versus thedollar and held onto those gains after the Bank of Japan keptpolicy on hold, as expected, but signalled it could ease nextmonth.
Central banks around the world have been loosening policy tocounter the risks of low inflation and recession. Easiermonetary policy has generally supported equities.
However, some analysts argue that a bond market rally hasgone too far, saying yields have fallen too fast and curvesflattened too much. Others are worried about the growing amountof sovereign debt with negative yields.
"This is a small positive for share prices as long as thereis no recession," said Shane Oliver, head of investment strategyand chief economist at AMP Capital Investors in Sydney.
"The only problem is a 25 basis-point cut was alreadyexpected, and the comments and dot-plot forecasts were not asdovish as the market hoped. I think the Fed will have to cutagain. There are still some risks from the yield curve."
U.S. stock futures fell 0.23% in Asia on Thursday.The S&P 500 reversed losses to end 0.03% higher afterPowell said he did not see an imminent recession or think theFed will adopt negative rates.
The Fed cut interest rates for a second time this year to1.75%-2.00% in a 7-3 vote but signalled further cuts areunlikely as the labour market remains strong.
The rate cut was widely expected, but the split vote hasraised some concern about predicting the future path of monetarypolicy.
So-called dot-plot forecasts from all 17 policymakers showedeven broader disagreement, with seven expecting a third rate cutthis year, five seeing the current rate cut as the last for2019, and five who appeared to have been against evenWednesday's move.
The yield on benchmark 10-year Treasury notesrose to 1.8013%, while the two-year yield rose to1.7703%.
The spread between two- and 10-year Treasury yields, the most commonly used measure of the yieldcurve, was near the lowest since Sept. 9.
The curve inverted on Aug. 14 for the first time since 2007when long-term yields traded below short-term yields, a widelyaccepted indicator of coming recession.
The Australian dollar fell 0.5% to $0.6793 after data showedthe nation's jobless rate rose slightly to 5.3% in August,bolstering expectations for the central bank to cut rates.
The yen rose around 0.3% to 108.14 per dollar.
The BOJ maintained its pledge to guide short-term interestrates at minus 0.1% and the 10-year government bond yield around0%.
Investors will closely watch BOJ Governor Haruhiko Kuroda'spost-decision press conference later on Thursday to gauge how heassesses risks to Japan's economic outlook.
U.S. crude futures rose 0.24% to $58.25 per barrel.Oil markets have stabilised after attacks in Saudi Arabia overthe weekend triggered a supply shock and sent prices soaring,but the volatility is still a risk as Middle East tensionsremain high.
Washington has blamed Iran for the attacks, a charge whichTehran denies. U.S. Secretary of State Mike Pompeo has said thestrike was "an act of war."
Sterling traded at 88.50 pence per euro, nearits strongest level since May 30. The pound was littlechanged at $1.2467.
Investors are awaiting a Bank of England policy meetinglater Thursday. The BOE is expected to keep rates unchanged, butuncertainty about how the UK will exit from the European Unionhas complicated the outlook for monetary policy.(Editing by Sam Holmes & Shri Navaratnam)