Asian stocks rose on Tuesday, putting pressure on the dollar and US Treasury yields. The Federal Reserve is expected to begin an easing cycle with a potentially significant rate cut. Trading was light due to extended holidays in China and South Korea, with investors eagerly awaiting the Fed's decision on Wednesday. Odds have increased in the past week for a 50-basis-point rate cut. The dollar's value dipped to its lowest level in over a year against the yen, reaching 140.64. The stronger yen raised concerns about the earnings of Japanese exporters, causing Tokyo's Nikkei index to decline by two per cent. Outside of Japan, MSCI's broadest index of Asia-Pacific shares rose by 0.47 per cent. Hong Kong's Hang Seng Index advanced 1.44 per cent, while S&P 500 futures and Nasdaq futures saw slight declines. For the year, markets have priced in roughly 120 basis points worth of easing by December. The two-year US Treasury yield, which reflects near-term rate expectations, fell to a two-year low of 3.5280 per cent. Brent crude futures rose by 0.44 per cent, reaching $73.07 per barrel, while US crude futures saw a larger gain, increasing by 0.67 per cent to $70.56 per barrel. Meanwhile, spot gold prices eased slightly 0.22 per cent to $2,576.84 an ounce. Attribution: Reuters Subediting: M. S. Salama
