Most Asian stocks rose Wednesday and a selloff in Treasuries paused as investors evaluated the economic outlook amid high inflation, a hawkish Federal Reserve and China’s Covid challenges.
Japan helped an Asia-Pacific equity gauge climb for the first session in four. China wavered after its banks held lending rates, disappointing investors looking for a cut to support an economy sagging under Covid lockdowns.
U.S. equity futures retreated amid an after-hours slump in Netflix Inc. on poor subscriber numbers. That tempered some of the optimism from a rally in the S&P 500 index ahead of the streaming giant’s results.
Treasuries edged up, paring a tumble from Tuesday. But they remain under longer term pressure from hardening expectations of sharp Federal Reserve policy tightening. Chicago Fed President Charles Evans said interest rates will probably exceed the neutral level in the campaign to damp price pressures. The dollar declined and the yen revived after a prolonged slump.
The yen remains the weakest performer in the Group of 10 this year on the policy contrast with the U.S.: the Bank of Japan offered to buy an unlimited amount of bonds to contain yields, underscoring its desire for loose monetary settings.
