Global Stocks Steady as Dollar Halts Rise – Asia Market Wrap
Following a recent selloff, global markets appeared to stabilise. Asian currencies were in focus as traders braced for the Federal Reserve’s longer-term interest rate hikes.
US and European share futures edged higher, as the MSCI Asia Pacific Index recovered from an earlier decline. The dollar fell after its largest five-day increase since October 2022. The durability of the dollar has put pressure on global emerging-market currencies, prompting authorities to strengthen their defences against fast devaluation.
Asian stocks split, with Japan’s losses offset by gains in mainland China. Chinese stocks recovered as the securities regulator attempted to soothe fears over new stock exchange rules following a drop in small-cap stocks.
Treasury rates were in a narrow range after reaching new 2024 highs on Tuesday, when Fed Chairman Jerome Powell indicated it would likely take longer to be confident that inflation is on track to meet the central bank’s target. The remarks marked a shift in his message following the third consecutive month in which a key indicator of inflation exceeded estimates.
