SINGAPORE, Jan 26 — Asian equities rose to a fresh seven-month high today, with Hong Kong shares playing catch-up to other markets’ gains as trade resumed after its three-day...
SINGAPORE, Jan 26 — Asian equities rose to a fresh seven-month high today, with Hong Kong shares playing catch-up to other markets’ gains as trade resumed after its three-day Lunar New Holiday.
After a series of super-sized rate hikes last year, the US central bank is now largely expected to raise rates by a smaller 25 basis points next week on signs that inflation is cooling. But weak corporate earnings so far have revived worries over the economic impact of the Fed’s restrictive policy and the S&P 500 ended lower overnight.
In the currency market, the dollar index, which measures the US currency against six major rivals, was at 101.57, not far off the eight-month low of 101.51 it touched last week. A closely watched part of the US Treasury yield curve measuring the gap between yields on two — and 10-year Treasury notes, seen as an indicator of economic expectations, was at -68.8 basis points. The inversion of this curve has predicted eight of the last nine recessions, analysts have said.