Asian shares hit seven-month highs on Wednesday, following record highs on Wall Street, Reuters reported. Investors largely ignored slightly higher-than-expected US inflation, anticipating upcoming interest rate cuts by mid-year. The MSCI's Asia-Pacific index outside Japan rose 0.2 per cent to its highest level since August. The Hang Seng climbed 0.4 per cent to 3-1/2 month highs. In Japan, the Nikkei remained steady, with focus on ongoing wage negotiations that could lead to an exit from negative interest rates. US consumer prices rose 0.36 per cent in February, slightly above expectations, but core CPI slowed to 3.8 per cent annually. This data did not significantly impact expectations for a mid-2024 rate cut. US treasury yields increased, with two-year yields up 6.5 basis points and 10-year yields up 5.1 bps. Interest rate futures dipped slightly, but US stock indexes surged to record highs. The S&P 500 rose 1.1 per cent to a record close. Oracle shares jumped 12 per cent after beating profit estimates and announcing a partnership with Nvidia. In foreign exchange, the dollar gained some support from rising US yields. The Aussie dollar and euro remained stable. The yen strengthened slightly against the dollar at around 147.60 level, amid expectations of a rate hike in Japan following wage negotiations. Gold prices retreated from near-record levels, while crude futures remained rangebound. Bitcoin hit a new high of $72,989.
