Stocks hemmed in by rate risks; yuan wobbles

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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...

SINGAPORE - 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. The Bank of Japan lifted interest rates last week but the yen has fallen near to three-decade lows on the dollar.

Markets were unsettled by a sharp drop in the yuan on Friday, after months of tight trading, and some speculate China is loosening its grip on the currency to allow it to fall.

 

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