Asian shares rose on growing expectations that major central banks could start slowing th pace of interest rate hikes in coming months, while the dollar’s retreat lifted commodities and pushed treasury yields lower. | Reuters
China stocks have had a turbulent week, headlined by Monday’s brutal selloff as global investors dumped Chinese assets, worried that President Xi Jinping’s new leadership team would put ideology before the economy.
“Yields are generally lower globally as the earlier run up in expectations for central bank tightening are pared a little further,” said Taylor Nugent, a markets economist at National Australia Bank in Sydney. U.S. Treasury yields fell, helped by a weaker dollar and the expectations of the Fed becoming less hawkish.
In the currency markets, the euro pushed above $1 for the first time in five weeks, peaking at $1.00935, as investors awaited a rate decision from the European Central Bank , with markets expecting it to deliver a 75 bp rate hike. .Sterling was trading at $1.1624, down 0.03 percent on the day after coming off a session high of $1.1645.The slide in dollar has also helped push gold prices higher, with spot gold scaling a two-week high on Wednesday.