- Asian equities sank for a second day as talks to raise the US debt ceiling stalled, sapping risk sentiment. The New Zealand currency sank after the central bank indicated that its rate hike cycle had reached its apex.
- After losses of more than 1% for the S&P 500 and Nasdaq 100 on Tuesday, the MSCI Asia Pacific Index was on track for its lowest closing in nearly two weeks. Oil rose for a third day as the Saudi oil minister warned short-sellers of impending pain, and gold maintained Tuesday's gains amid speculation that the debt crisis may increase demand for safe-haven assets.
- Toyota shares rose as much as 5.5% in Tokyo, defying the trend after falling in the final minute of trading Tuesday. Japanese travel-related and retail companies slumped, mirroring a drop in European luxury stocks that cost the industry more than $30 bln.
- According to Mitsushige Akino, senior executive officer of Ichiyoshi Asset Management, the recent advances in Japanese markets may have been too quick. He stated that there is a chance that the US debt ceiling talks may end in June without a resolution, causing the market to slump even further.
- Bond yields in New Zealand declined and the currency fell more than 1% after the Reserve Bank of New Zealand raised interest rates to 5.5%, as expected, while hinting that rate reduction could begin in late 2024.
