SYDNEY : Asian shares started cautiously on Monday after their best weekly run in five months, as investors looked ahead to China's rate decision and U.S. Federal Reserve Chair Jerome Powell's testimonies for clues on the rate path ahead.
MSCI's broadest index of Asia-Pacific shares outside Japan was 0.1 per cent lower, after hitting a four-month high on Friday and finishing up 3 per cent for the week, the best since January. "This requires more policy easing to stabilise investment – the key drag to 2Q GDP growth - and prevent weakness from spreading to household sentiment and services," said Xing.
Markets are pricing in a 70 per cent probability of the Fed hiking by a quarter point in July before holding steady for the remainder of the year, though officials have sounded hawkish and the dot plot indicates two more hikes..