(Bloomberg) — Asian stocks slipped Wednesday on growth concerns ahead of a US inflation report and as traders weighed the impact of the presidential debate. The yen rose after a Bank of Japan official signaled more interest rate increases.
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A gauge for the region’s equities fell for a third session, with benchmarks in Japan and Hong Kong leading declines. Futures for US stocks dropped. Global growth worries resurfaced as oil steadied below $70 and Treasury yields fell in the run-up to the US consumer price index later Wednesday and the Federal Reserve policy meeting next week.
The yen gained to its strongest level against the greenback since January after BOJ policy member Junko Nakagawa said the central bank will continue to adjust the degree of easing. Most economists surveyed expected the central bank to wait until December or January before raising rates again, with the next decision scheduled for next week. Emerging market currencies gained against a weaker greenback.
The match-up between between Vice President Kamala Harris and former President Donald Trump ranged from their plans for the economy to US-China relations and immigration. As the debate closed, the odds for victory for Harris climbed to around 55% on PredictIt.
“Asian currencies are being buoyed by Nakagawa’s comments this morning, as well as indications that Harris is doing well in the debate as seen in the live betting odds,” said Alvin Tan, head of Asian currency strategy at Royal Bank of Canada in Singapore. “The market has long being worried about Trump’s tariff proposals, so a reduction in his chances is negative for the dollar”
Markets continued to look for cues on the future direction of US-China relations during the debate, with defense, biotechnology and banking companies in the region under the microscope. Trump’s support of the crypto sector saw Bitcoin slip as the former president’s odds for victory briefly dipped on PredictIt.
The Japanese currency rallied to 141.51 versus the greenback, the strongest level since Jan. 2. Nakagawa’s comments…
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