Stocks hemmed in by rate risks; yuan wobbles

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Halifax police investigating Monday morning Dartmouth death as suspicious | SaltWire #newsupdateSINGAPORE - Asian equities climbed on Tuesday but could not break this month's highs as mixed messages from U.S. Federal Reserve policymakers left doubts hanging over the timing of interest rate cuts.

"Comments by FOMC participants suggest to us that four voters – Bostic, Bowman, Mester, and Barkin – see zero, one or two cuts this year," said Standard Chartered strategist Steve Englander. U.S. two-year yields, which track short-term interest rate expectations, rose in New York trade overnight then fell 4.5 basis points in the Asia morning to 4.58%. In foreign exchange, Monday's rhetoric from Japan's top currency diplomat, Masato Kanda, kept the yen steady as traders weigh the risk of Japan buying heavily. Kanda said the yen's recent slide was"strange" and"speculative".

"The pair continues to follow some combination of U.S. yields and Nikkei, with yields the primary driver."

 

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