tritonpoker| U.S. business activity accelerates at its fastest pace in two years, with Fed interest rate cuts expected to be postponed until December

Huitong Financial App-Asian stock markets followed Wall Street lower on Friday, as yesterday's US economic activity data showed that the Federal Reserve is likely to keep interest rates unchanged for most of the year. The MSCI Asia Pacific Index fell for the fourth day in a row and is set to fall for the first time in five weeks, with stock markets from Hong Kong to mainland China, Japan and Australia falling. Us futures prices edged higher after the S & P 500 posted its biggest drop of the month on Thursday.

For now, swaps fully reflect the price of the Fed's first across-the-board rate cut in December, up from November the day before.

The US composite purchasing managers' index (PMI) shows that business activity is accelerating and employment indicators for manufacturing and services have also improved. Data show that US business activity accelerated at its fastest pace in two years, mainly reflecting strong growth among service providers and a rebound in inflation.

Us Standard & Poor's Global Manufacturing PMI recorded 50 in MayTritonpoker.9, higher than expected and previous value of 50, a two-month high; the initial PMI of S & P global services in the United States recorded 54.8 in May, higher than expectations and previous value of 51.3, a 12-month high; and the initial global composite PMI of S & P in May recorded 54.4, a 25-month high.

Emerging Asian currencies, including the South Korean won, the Malaysian ringgit and the Thai baht, fell against the backdrop of a stronger dollar. The exchange rate of the US dollar to the Group of 10TritonpokerHis currency's rally extended to the fifth day, the longest consecutive gain since April.

"the market seems to be in the'(economic) good news is bad news' pattern because they are worried that the Fed's' high interest rates will last longer'," said Vishnu Varathan, head of Asian economics and strategy at Mizuho Bank. "pressures from rising US Treasury yields and a stronger dollar seem to be weighing on emerging markets Asian equities and currencies."

The rebound in global stock markets has faltered this week as investors are less certain about the path of US interest rate cuts and Fed members are looking for more evidence of an easing in inflation. Sentiment has also been dampened by the suspension of the rally in Chinese stocks this week and the strengthening dollar.

Investors will also be watching the shift to a shorter settlement cycle in the US. The US securities regulator warned that such an approach could initially lead to the failure of some deals.

It is reported that in order to reduce the risk of unsettled trading after the volatility period, the settlement cycle of US stock trading will change from Tunable 2 to Tunable 1 from May 28. While shorter settlement times can reduce the risk of buyers and sellers defaulting before the transaction is completed, shorter cycles can pose operational challenges, such as potential confusion in foreign exchange trading, where foreign investors must buy dollars. to fund US securities trading. In addition, there could be other consequences, and fund managers say global index funds, such as ETF, which has a large portfolio and mismatched settlement, could also face collapse.

Atlanta Fed Chairman Raphael Bostic reiterated this week's consensus among officials that the Fed needs to be patient in its next move because prices are still under considerable upward pressure. The minutes of the Fed's May meeting released this week showed that policymakers unanimously wanted to keep interest rates high for a longer period of time, and "many" questioned whether the policy was restrictive enough to bring inflation down to target.

Meanwhile, after artificial intelligence darling Nvidia announced another round of bright earnings, the chipmaker's shares rose more than 9 per cent on a positive outlook to break through the historic $1000 mark. JPMorgan Chase's trading desk says the S & P 500 may have room for further gains as the economy strengthens steadily.

Treasuries rose slightly after falling on bets that US interest rates would remain high for a longer period of time. An index that tracks the dollar was little changed in Asian trading on Friday, rising for the fourth day in a row after Treasury yields rose.

In Japan, inflation slowed for the second month in a row, and investors continued to weigh the BoJ's ability to raise interest rates further this year. Japanese 10-year bond yields topped 1% this week, according to data collected by Bloomberg, and the market almost fully digested expectations of a 10 basis point rate hike at the July meeting. The yen traded around 157 yen against the dollar.

However, the cooling in prices will not "stop financial markets from speculating about further policy tightening by the BoJ", said Kristina Clifton, senior economist at the Commonwealth Bank of Australia in Sydney. "at this stage, we do not expect the BoJ to raise interest rates again until around October," she added, adding that this could put further pressure on the yen.

In the corporate world, Alibaba raised $4.5 billion by issuing convertible bonds, one of the largest such offerings in recent years, according to people familiar with the matter. In Japan, Kobayashi shares soared after Seth Fischer, Oasis Management's chief information officer, said the Japanese pharmaceutical company could rise 70 per cent if it partnered with the rights fund.

Boeing fell 7.6% on Thursday, the biggest drop in four months, after the company said it would continue to spend money this quarter and throughout the year.

On the commodities front, oil prices held steady near their lowest level in more than three months as the market showed signs of weakness ahead of the US summer driving season.

Elsewhere, gold has regained its early losses after a sell-off triggered by U. S. economic data on Thursday. The price of gold has plummeted by more than $100 in the past three trading days.