Asian equities sink as rate cut hopes diminishAFP, HONG KONGMost Asian equities sank yesterday, tracking a sell-off on Wall Street, as a forecast-topping US inflation report dealt a hefty blow to hopes for an early interest rate cut. Expectations for a rate cut have been doused in recent weeks by a series of strong indicators — particularly on the economy and jobs — while several monetary policymakers warned they want to see more data before shifting. A pedestrian walks past an electronic board showing Nikkei 225 index and the rate of yen against US dollar in Tokyo yesterday. The “CPI report caught a lot of people off guard”, Chris Zaccarelli of Independent Advisor Alliance said. In that case, it’s unlikely that the Federal Reserve will cut interest rates in May,” Innes said.

Source: Taipei Times February 15, 2024 03:33 UTC