Asian equities diverged Wednesday after another unremarkable day on Wall Street, where rising bond yields and comments from Federal Reserve officials dampened expectations for US interest rate cuts.
A global rally that has seen several markets hit multiple records — particularly in New York — appears to have run out of gas as traders assess the US central bank’s plans in the wake of forecast-topping economic data and ahead of a tight presidential election.
They are also keeping tabs on Beijing, hoping for more measures to reignite growth after a slew of stimulus over the past month, while geopolitical tensions helped push safe-haven gold to another peak.
Bets on another bumper 50-basis-point rate cut at the Fed’s next meeting have dwindled following a recent spate of data showing the world’s top economy in rude health and the labour markets resilient.
A number of key members of the bank’s policy board …