According to Yahoo News, Asian stocks briefly hit one-week highs on Wednesday, while bonds rose and the US dollar sank on fresh signs of possible US interest rate cuts. The New Zealand dollar jumped after its central bank indicated another hike may be necessary if inflation remains persistent. MSCI’s broadest index of Asia-Pacific shares outside Japan initially rose 0.5% in early trading before weakness in Hong Kong technology shares returned it to a stable level. Japan’s Nikkei fell 0.2% and the New Zealand dollar rose 1.1% to hit a four-month high of $0.6207, breaking resistance levels.
The US dollar fell to new multi-month lows against the euro, yen, pound sterling, Australian dollar, yuan and Swiss franc. Gold hit a seven-month high above $2,051 an ounce. Overnight, Federal Reserve Governor Christopher Waller, an influential and previously hawkish voice at the US central bank, told the American Enterprise Institute that rate cuts could begin within months if inflation continues to fall. Fed funds futures rallied following the observation, pricing in more than a hundred basis points of cuts in 2024 and a 40% chance they will begin as early as March. Two-year Treasury yields fell sharply and the dollar continued to fall in Asia.
Fidelity Asian Values Plc (LON:FAS) provides shareholders with a differentiated equity exposure to Asian Markets. Asia is the world’s fastest-growing economic region and the trust looks to capitalise on this by finding good businesses, run by good people and buying them at a good price.
