ECONOMY
On Wednesday, Asian Indices tracked the Wall Street rally after U.S. central bank comments pointed to the increasing prospects of an interest rate cut, boosting investor sentiment and pushing the dollar lower.
Federal Reserve Chairman Jerome Powell on Tuesday dropped his standard reference to the Fed being “patient” in approaching any rate decision, saying instead the central bank will respond as “as appropriate” to trade pressure.
Activity in Japan’s services sector expanded at a slightly slower pace in May than the previous month as the rate of job creation weakened and businesses turned less optimistic about the future, a survey showed on Wednesday.
S&P Dow Jones Indices and New Zealand’s exchange operator NZX Ltd on Wednesday launched two new indices that will track firms based on their geographic revenue exposure, the companies said in a joint statement.
South Korea posted on Wednesday its first current account deficit in seven years in April on a surge in stock dividend payments amid falling exports, but the balance stayed in the black after adjustment for seasonal factors.
New orders for U.S.-made goods fell in April and shipments dropped by the most in two years, indicating continuing weakness in manufacturing activity that could hurt the broader economy.
Philippine annual inflation was 3.2% in May, faster than the previous month’s 3%, the government’s statistics agency said on Wednesday.May inflation was above the 2.9% forecast in a Reuters poll but was within the central bank’s 2.8-3.6% projection for the month.
BONDS
The 10-year Treasury note yield -0.61% rose 3.4 basis points to 2.119%, off its lowest finish since September 2017.
The two-year note yield +0.20% was up 2.4 basis points to 1.872%, bouncing from a multiyear low of 1.848% on Monday.
The 30-year bond yield -0.32% climbed 5.2 basis points to 2.602%, marking its biggest daily rise since April 1. Bond prices move in the opposite direction of yields.
The 10-year Australian government bond +0.70% traded at 1.53% on Tuesday, more than a percentage point lower than its November high of 2.78%.
CURRENCY
The dollar struggled to bounce off seven-week lows on Wednesday after U.S. central bank officials hinted at the possibility of an interest rate cut in the face of rising risks to trade and global growth.
Australian dollar rose 0.05% to $0.6996 ahead of the release of first-quarter gross domestic product data.
The euro was up 0.05% at $1.1263, extending its gains to a fourth session.
The yen, the dollar held steady at 108.10 yen per dollar, within striking distance of a near five-month high of 107.845 - its highest since Jan. 10 - hit during the previous session.
ENERGY
Oil prices resumed their slide on Wednesday, dragged down by a surpise gain in U.S. inventories and comments from the head of Russian state oil producer Rosneft questioning the point of a deal with OPEC to withhold supplies.
Brent futures were down 29 cents, at $61.70 a barrel . They rose 1.1% on Tuesday after a near 13 percent fall in the previous four sessions. U.S. West Texas Intermediate crude was down by 38 cents, at $53.23 a barrel. The U.S. benchmark closed 0.4% higher on Tuesday.
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