The MSCI Mingsheng Global Markets Index rose slightly on Thursday to its highest level this year, while U.S. benchmark bond yields and the dollar fell after the Federal Reserve (Federal Reserve/FED) hinted at a possible rate cut later this year.
The MSCI Mingsheng Asia-Pacific (excluding Japan) index rose 0.2%, while the Nikkei index of Nikkei shares rose 0.5%.
The MSCI Mingsheng global market index rose 0.2%, reversing most of the decline recorded by the US President last month after threatening to impose taxes on all Chinese imports into the United States.
Signs that China and the United States will resume trade negotiations also support risk sentiment.
A number of Asian central banks will hold policy meetings later today, and most of them are expected to show a tendency to relax monetary policy.
The S& P 500 index. SPX closed up 0.3% at 2,926 on Wednesday, 19 points below its record closing high on April 30.
The Federal Reserve said Wednesday it was prepared to cut interest rates as early as next month in response to rising global and domestic economic risks.
Many Federal Reserve policymakers cut their interest rate expectations for the rest of the year by about half a percentage point. Federal Reserve Chairman Powell said other policymakers believed that the reason for the rate cut was more adequate.
Many investors believe the overall tone is more dovish than they expected, pushing the yield on the 10-year Treasury bond to its lowest level since November 2016, to 1.986%.
The yield on two-year bonds fell to 1.721%, the lowest since November 2017.
The trend of money market derivatives shows that the probability of cutting interest rates by 25 basis points at the 30-31 July meeting is 100%, and the probability of cutting interest rates by 50 basis points is about 33%.
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