- Asia's equities crept higher on Wednesday, following a late rebound in US stocks in a tumultuous session as Fed's Powell declined an opportunity to dampen investor euphoria.
- Despite erratic trading in Hong Kong, mainland China, and Japan, equities in Australia and South Korea rose, pushing a region-wide benchmark of shares higher. US futures were mostly unchanged after the S&P 500 gained more than 1% on Tuesday. The Nasdaq 100, which is heavily on technology, beat major indexes, rising more than 2%.
- Australian bonds fell in early trading following treasury bond falls on Tuesday, which were partially reversed in early Wednesday trading. The dollar index was stable after its decline on Tuesday ended a 3-day gain.
- The yen held steady after rising more than 1% on Tuesday, while the Aussie nudged higher after gaining more than 1% on Tuesday on the RBA's decision to raise interest rates.
- Fed's Powell sober remarks matched those made following last week's FOMC meeting, assuaging traders who were anticipating the Fed chief to push back on financial conditions relaxing and Friday's bumper jobs data. Fed's Powell stated that disinflation has begun and that additional hikes are expected if the labour market remains robust.
- Separately, Fed's Kashkari stated that given the strength of the US labour market, the Fed would likely have to raise interest rates to 5.4% at the top of its target range. Last week, the Fed raised interest rates by 25 bps to a range of 4.5% to 4.75%.
