Asian stocks steady ahead of Fed rate hike decision

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The US wages slowdown hints at a possible end to interest rate hikes as markets wait for Jerome Powell’s tone

Singapore — Asia’s stock markets steadied on Wednesday, with signs of a slowdown in US wages bolstering hopes that the Federal Reserve could hint at an end to interest rate hikes at its meeting later in the day.

Interest rate markets have priced in a slowdown in the cracking pace of rate hikes, with a 25 basis point hike seen bringing the Fed funds rate target range to 4.5-4.75%.Brian Daingerfield, head of G10 currency strategy at NatWest Markets “Anything short of Powell going 10 for 10 hawkish may ultimately be seen as being not hawkish enough. Conversely, the market may take even the smallest dovish concession and run with it.”

Exxon posted a record $59bn adjusted profit. United Parcel Service , the world’s biggest package delivery firm, beat forecasts and shares rose 4.7%. South Korea posted a record monthly trade deficit for January due mainly to a far worse-than-expected drop in exports. Unemployment rose in New Zealand, though only a little bit and from record lows.

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