Global stocks extended their advance as easing bets on a Federal Reserve interest-rate hike this month lifted sentiment.
The dollar steadied after sliding to a four-month low, while the yen pared some of its two-day surge. MSCI’s Asia Pacific equities gauge climbed 0.8%, sending the All Country World Index — the broadest measure of global stocks — higher for a third day.
The gains followed a rally on Wall Street spurred by Fed Governor Christopher Waller’s comments that he would support keeping rates steady if price pressures continued to ease. Swaps priced roughly even odds of a quarter-point hike in September, down from about 70% earlier this week.
Treasuries and gold held their gains from the New York session. A Bloomberg gauge of the dollar was little changed after falling to its lowest since May. An index of Asian currencies climbed to levels last seen in October 2024. Attention in Asia was once again on the yen, which strengthened about 2% Thursday, reversing a month of gradual decline.
Traders lifted bets on Bank of Japan rate hikes and remained vigilant to the risk of official action to further boost the currency.
The yen pared some gains, trading at about 156.28 per dollar, having strengthened to as much as 155.30 in the prior session. Stocks and bonds drew support from Waller’s comments after yields surged globally to multi-decade highs earlier this week, as rising oil prices and Chair Kevin Warsh’s hawkish stance fueled expectations for a Fed rate hike.
The rout also reflected demands for greater compensation amid years of heavy government spending, persistent price pressures and a wave of corporate borrowing to finance the artificial-intelligence buildout.
