Global stocks are closing in on a fourth month of gains, lifted by hopes of a soft landing for the US economy and the prospect of lower interest rates.
Shares in China led the advance in Asia, with sentiment boosted by a slew of upbeat earnings and the yuan’s rise to levels unseen in more than a year.
Equities in Australia, Hong Kong and Japan also climbed, as did US futures, before publication of the Federal Reserve’s preferred inflation gauge later in the day. Japan’s 10-year bond yield edged higher after data showed price pressures in Tokyo quickened in August, backing the case for a further normalization of monetary policy.
The yen was on track to halt a two-day drop, while Treasuries were poised for their longest monthly winning streak in three years.
Bets for a Fed rate cut continue to dominate global markets, after data showed that the central bank has managed to tame inflation without the economy tumbling into recession.
US output grew at a slightly stronger pace in the second quarter than initially reported, reflecting an upward revision to consumer spending that more than offset weaker activity in other categories.
