Asian shares steady as investors weigh U.S. recession risk; kiwi plunges

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Asian shares steady as investors weigh U.S. recession risk; kiwi plunges
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Asian shares held steady on Wednesday as investors tried to come to terms with a...

TOKYO - Asian shares held steady on Wednesday as investors tried to come to terms with a sharp shift in U.S. bond markets and the implications for the world’s top economy.

Chinese stocks outperformed their Asian peers on expectations that Beijing would roll out more measures to support growth after data showed industrial profits shrank the most since late 2011. “While the markets now got out of the extreme nervousness about the U.S. yield curve, there is no denying that U.S. data has been soft of late, hardly dispelling worries about the outlook,” said Hirokazu Kabeya, chief global strategist at Daiwa Securities.

“We are entering a new phase in markets as the U.S. monetary policy cycle has come to a turning point, from rate hikes to rate cuts,” said Akira Takei, bond fund manager at Asset Management One. Investors are also wondering about Britain’s plan to exit from the European Union, with potential scenarios spanning from a cancellation of Brexit to a no-deal exit.

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