Expectations of a less aggressive pace of U.S. monetary tightening from as soon as next month continued to support some stock markets in Asia, but Hong Kong's Hang Seng dropped sharply as record COVID-19 infections in China dimmed the outlook.
The dollar index , which measures the greenback against the euro, yen and four other rivals, hovered not far from Thursday's low of 105.62, and last stood at 105.86.slow the paceFutures markets show investors now see U.S. rates peaking just above 5% around May, and are pricing in roughly two-thirds odds that the Fed slows to a half-point hike on Dec. 14 from a string of 75-basis-point increases.
Yields are sinking for a reason; 50bp in December is consistent with FOMC projections, and that is not the reason. But the underwhelming survey data(PMIs) point to a faster-than-expected slowing in activity. So the Fed hikes are doing their job of slowing the economy down.