Sydney — Asian shares retreated from two-week highs on Thursday and China started on the back foot on fears central banks were closer to considering winding back their emergency stimulus while the dollar held at a one-week top.

MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.5% at 691.76, still not too far from Wednesday’s high of 696.76, a level last seen on May 10...

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