Asian shares tracked the Wall Street rally on Wednesday after U.S. central bank comments pointed to the increasing prospects of an interest rate cut, boosting investor sentiment and pushing the dollar lower.
The rebound in stock prices also prompted U.S. bond yields to step up from their recent lows, with the 10-year yield off its 21-month low hit earlier in the week.
MSCI’s broadest index of Asia-Pacific shares outside Japan edged up 0.4%, while Japan’s Nikkei average climbed 1.9%.
Supporting the market cheer, Federal Reserve Chairman Powell on Tuesday dropped his standard reference to the central bank being “patient” in its approach to any rate decision, instead saying the Fed would respond “as appropriate” to the risks posed by a global trade war and other recent developments.
Source : Reuters