US Treasury yields climbed on Wednesday after an unexpected rise in UK inflation last month and stronger-than-expected U.S. December retail sales data strengthened the case that interest rate cuts will not be as imminent as the market expects.
The three major US stock market indexes were lower after paring initial losses, while the greenback strength against a basket of world currencies waned a bit after the first hour of trading.
MSCI s broadest index of Asia-Pacific shares outside Japan rose 0.7% to the highest since early September and was up 2.5% for the week. Japan s Nikkei jumped 1.2%, also heading for a weekly gain of 2.5%.
RBI’s MPC is expected to maintain status quo on key rates with fifth consecutive pause when it shares the outcome of the MPC meeting on December 8. The RBI may continue to defend the wicket given softening crude prices, weakening Indian rupee and easing long term US yields.
The optimism can be seen in the relentless asset growth of the iShares MSCI Emerging Markets ex-China ETF, known by its ticker EMXC, which gives investors exposure to emerging market equities, excluding Chinese stocks