- Following another drop on Wall Street, Asian stocks traded within tight ranges on Thursday, as Fed's Powell stuck to the script of higher interest rates to tame inflation.
- Gains in Japanese and South Korean stocks lifted a regional equity index higher, offsetting a drop in Australian shares. Hong Kong, mainland China, and Taiwan markets are closed for the holidays, reducing activity in the region.
- The S&P 500 and Nasdaq 100 futures contracts were little changed after the two benchmarks fell for a third consecutive session on Wednesday, as investors rethink the bullish spirits unleashed by the Fed's rate pause last week.
- In Asian trading, Treasury yields were broadly flat after shorter maturity yields rose as Powell's signal of higher rates fueled recession fears. For the first time since March, the rise in short-dated yields pushed the inversion of a key segment of the yield curve to a full percentage point.
- The 10-year yield in Australia fell three basis points, while the yield in New Zealand rose six basis points. The currencies of the two countries also made minor gains against the US dollar. The yen rose slightly but remained close to 142 to the dollar. The dollar index dropped slightly.
