Asian equities sank Wednesday as traders take a breather from a global rally that has been fuelled by expectations the Federal Reserve will cut interest rates next month.
With few sparks to drive buying, markets took their cue from Wall Street, where the main indexes slipped after an eight-day advance, with focus on a speech Friday by central bank boss Jerome Powell at the Jackson Hole symposium in Wyoming.
After a hefty retreat at the start of the month — caused by a weak US jobs report that fanned recession fears — investors have rediscovered their buying mojo, with speculation rife that the Fed will begin easing monetary policy at its September meeting.
Data showing inflation easing, retail sales remaining healthy and the jobs market softening — but not too quickly — have reinforced a long-running view that bank officials are on course to guide the economy to a soft …