- As traders bet that the upcoming US consumer price index will show further softening, equities rose in Asia, extending an advance seen on Wall Street.
- Hong Kong, Japan, and Australia opened higher after the S&P 500 reclaimed its key 3,900 level. In Asian trading, US futures contracts rose slightly.
- Treasury yields pared their gains from Tuesday, with the 10-year bond yield falling to around 3.6% as investors remained focused on the US price outlook.
- Fed's Powell did not comment on the outlook for monetary policy at a Tuesday event, as traders await Thursday's inflation data for any signs of cooling. Any slowing in CPI figures could help build the case for the Fed to slow its rate hike pace, even though some officials say it's too soon to declare victory over inflation.
- Australian government bond yields and the currency lost ground after data showed inflation accelerated in November.
- A measure of dollar strength was little changed, remaining close to a seven-month low. Since late December, the yen has remained in the middle of its trading range. The offshore yuan weakened slightly but remained close to its strongest level against the US dollar since August.
