Bonds in Asia declined as speculation U.S. interest rates will be raised as soon as next month underpinned the dollar. Copper and gold fell as shares in the region were mixed. Crude oil rallied.
The Bloomberg Dollar Spot Index extended gains at a four-month high, up 0.2 percent by 12:32 p.m. in Tokyo, as yields on 10-year debt from New Zealand to Japan climbed. Oil rose a second day, continuing its recovery from Monday’s rout, while copper resumed losses with gold. The MSCI Asia Pacific Index fluctuated as U.S. index futures rose 0.2 percent after Apple Inc. drove equity losses Tuesday.
Traders boosted bets on a September rate hike in the U.S. after Federal Reserve Bank of Atlanta chief Dennis Lockhart said he would only endorse putting it off should there be a significant deterioration in economic data. Oil’s rebound steadied commodity markets, quelling losses among energy and mining stocks ahead of a swag of services industry data from China to Japan and the U.S. Thailand is projected to keep benchmark borrowing costs unchanged at a review Wednesday.
“The overseas environment will continue to be a drag on the market,” Hiroichi Nishi, a manager at SMBC Nikko Securities Inc. in Tokyo, said by phone. “Lockhart’s comments made the market wary of rate hikes once again. Caution toward the Chinese economy continues to weigh on the market as well.”
Bloomberg’s dollar gauge, which tracks the greenback against 10 major peers, rose a third day, with the currency eking out further gains Wednesday against 12 of 16 major peers. The Malaysian ringgit slid 0.6 percent ahead of trade data, while the Korean won resumed losses, falling 0.7 percent. The Thai baht was down 0.3 percent before the rate decision.
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