- An index of Asian shares surged for a fourth day on expectations of supportive monetary policy from China and Japan, as well as a delay in interest rate hikes from the Federal Reserve.
- The Topix index in Japan gained about 1%, extending its three-decade high. Australia's benchmark index rose as well. Hong Kong shares rose slightly, indicating discussion over how much stimulus is needed to genuinely revitalise the economy.
- The advances in Asia come on the heels of the S&P 500's fourth consecutive gain, its longest winning streak since early April. It is approaching the 4,400 level, which it has not traded at in over a year.
- Foreign investors interpreted a slowdown in US inflation statistics on Tuesday as proof that the Fed will maintain interest rates in the 5%-5.25% range later Wednesday. Swap traders rate the chances of a rise at 10%, with a July move still possible.
- The Cboe Volatility Index, Wall Street's fear gauge, fell down below 15, compared to an average of 23 over the last year, indicating continued support for risk assets.
- Investors in the area were also encouraged by PBoC, which is set to decrease its medium-term lending facility rate on Thursday, and the BoJ, which is expected to maintain its ultra-easy policy on Friday.
