MSCI’s index of Asia-Pacific shares outside Japan rose 0.57% to snap a two-day losing streak.
China’s stock market was 0.14% up. Hong Kong’s Hang Seng Index surged almost 3% following a pro-China newspaper report that the Hong Kong government is contemplating relaxing its coronavirus curbs further.
The newest report arrives after the government on Wednesday revealed comprehensive changes to ease a tough anti-coronavirus policy that has struck China’s economy.
Increasing suspicions that the Fed might adhere to a longer rate-increase cycle following strong jobs restricted the progress in Asia. Moreover, service-sector reports crumpled investors’ risk appetite.
Elsewhere in Asia, Australia’s S&P/ASX 200 index yielded 0.67%, while Japan’s Nikkei dropped to almost a one-month low. E-mini futures for the S&P 500 slipped 0.13%, while Eurostoxx 50 futures were under 0.20%, German DAX futures dropped 0.18%, and FTSE futures 0.17% weaker.
Bonds Are Low
Also entertaining were U.S. Treasury yields, with five-year notes to 30-year bonds approaching three-month lows.
The U.S. central bank should increase interest rates by 50 basis points next week after bearing four 75 bps hikes.
The Bank of Canada on Wednesday indicated that its historic tightening campaign was close to an end. It raised benchmark overnight interest rates by 50 basis points to 4.25%, the highest level in nearly 15 years.
Data on Wednesday revealed that U.S. worker productivity rebounded negligibly faster than originally thought in the third quarter. However, the trend remained vulnerable, keeping labor costs raised.
