Equities mixed as Powell dims expectations for rate cuts

On Wednesday, the majority of Asian equities fluctuated between flat and low as hopes for interest rate reduction in the US dwindled, while Chinese markets rose on some indications of an improving economy.

Following remarks by Federal Reserve Chair Jerome Powell that the bank lacked the confidence to start reducing interest rates due to persistent inflation, regional markets received a shoddy lead-in from Wall Street.

Nevertheless, a little increase was seen in U.S. stock index futures during Asian trading since Wall Street's meltdown suddenly seemed excessive.

Chinese equities surge on optimism for stimulus and a good GDP.

This week, sentiment towards China improved as figures from the gross domestic product indicated that the country's economy expanded faster than anticipated in the first quarter. However, March's retail sales and lower industrial output figures indicated that this momentum was already waning.

However, the conflicting information has also raised hopes that Beijing would continue to use stimulus policies to boost the economy. In recent sessions, further efforts to assist the stock market were also observed to be implemented by the Chinese government.

Following Powell's remarks overnight, the markets began to wonder more if the Federal Reserve will lower interest rates in June.

The majority of stock markets were affected by this idea, which caused Asian bourses to move in a flat-to-low range. Data indicating a steep decline in Singapore's non-oil exports, which are seen as a harbinger for trade in the area, further soured sentiment towards Asia.

This week's focus was on further remarks made by Fed officials and Japanese inflation statistics, which provided more indicators of major economies.

(Sources: investing.com, reuters.com)