Equities rose in Japan, Hong Kong and Australia, mirroring a 2% advance for the S&P 500, which snapped a six-day losing streak.
The region’s financial authorities have been on high alert in recent weeks, with China, Japan and South Korea among nations taking action in markets to prevent a downward spiral. China’s onshore yuanfor the first time in nine sessions, after the central bank issued a verbal warning against currency speculation.
“The central bank is in a very difficult position right now,” Julie Biel, Kayne Anderson Rudnick portfolio manager and senior research analyst, said of the BOE in an interview with Bloomberg TV. “Everyone has been a little bit backed into a corner in seeing the volatility and market reaction.” Federal Reserve officials continued to hammer home the central bank’s hawkish outlook. The Fed’s Atlanta president Raphael Bostic said he backs raising rates by a furtherby the end of this year to counter inflation that has been worse than he expected.