Asian shares stabilised on Wednesday after a recent sell-off, as investors remained cautious following a shift in US rate cut expectations by the Federal Reserve Chair, leading to higher Treasury yields, as reported by Reuters. MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.1 per cent after a sharp decline of over four per cent in the past three sessions. Japan's Nikkei dropped 0.8 per cent, hitting a two-month low. Taiwanese shares outperformed, gaining 1.6 per cent. Chip-making giant Taiwan Semiconductor Manufacturing Co (TSMC) rose two per cent ahead of its earnings results. The Shanghai Composite index gained 1.2 per cent after the securities regulator clarified new listing rules, calming recent market panic. EUROSTOXX 50 futures are flat for the day, signaling a subdued open. Meanwhile, US stock futures slipped 0.1 per cent after Wall Street closed lower. The dollar's strength is causing concerns in Asian currency markets, with the yen hitting new lows and other currencies also under pressure. New Zealand dollar rose after strong inflation data, while Asian-Pacific shares rebounded slightly after recent losses. Fed Chair Powell's comments on inflation data have reduced expectations for rate cuts this year, with markets now expecting fewer cuts than previously anticipated. Speaking to a policy forum focused on US-Canada economic relations on Tuesday, Powell said that while inflation continues to make its way lower, it hasn't moved quickly enough, and the current state of policy should remain intact. Elsewhere, oil prices dipped as concerns about global demand overshadowed ongoing geopolitical tensions in the Middle East. Gold prices also retreated slightly after reaching record highs earlier in the week.
