Most Asian stocks rose with U.S. and European equity futures Wednesday, while Treasuries trimmed a rally spurred by Federal Reserve officials again predicting transitory price pressures.
MSCI Inc.’s Asia-Pacific share gauge climbed a fifth day, aided by gains in Hong Kong and China, where the onshore yuan hit a three-year high. The S&P 500 fell overnight amid softer new home sales and consumer confidence data.
Treasury yields are below this year’s highs as more Fed officials join a chorus downplaying price pressures. Oil was steady and gold erased 2021 losses. Bitcoin was near $40,000 in a partial recovery from last week’s crypto rout.
New Zealand’s dollar jumped more than 1% after the central bank projected interest rates may rise in the second half of next year if the economy continues to recover from the pandemic. Signs of quickening inflation are giving investors pause for thought as they consider the outlook for the exceptional stimulus buoying markets.
Fed Vice Chair Richard Clarida said price pressures in the U.S. would largely be transitory. He added officials may be ready to begin discussing how to taper asset purchases “in upcoming meetings,” echoing recent Fed minutes. [BLOOMBERG]
