Bonds extended steep losses Wednesday on the Federal Reserve’s strengthened resolve to clamp down on inflation, while equity markets gained as investors expanded their search for hedges.
An MSCI Inc. gauge of Asia Pacific shares rose for a second day, led by Japan and Hong Kong. U.S. futures fluctuated after the S&P 500 advanced for the fifth session in six.
The index has now recovered halfway from the rout that started in January. European contracts advanced. Treasuries added to losses triggered Monday by signals from Federal Reserve Chair Jerome Powell that a half-point interest-rate hike is possible at the central bank’s next meeting.
Short-term U.S. government bonds sank toward their worst quarterly performance in almost four decades, and yields rose to highs unseen since mid-2019. Australian and New Zealand debt weakened.
The yen sunk to a six-year low, while a gauge of the dollar was steady. Oil advanced on the prospect of fresh curbs on Russia over its invasion of Ukraine and as U.S. crude inventories declined. Chinese stocks underperformed after China imposed another lockdown to curb rising Covid-19 cases.
