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.
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 offshore yuan slipped after the International Monetary Fund said China’s currency trails its global counterparts in major benchmarks and “significant work” in analyzing data is needed before deciding whether to grant it reserve status.
Lockhart told the Wall Street Journal there’s “a high bar right now to not acting, speaking for myself.” While talking up the economy’s recovery from a first-quarter slump, the central banker acknowledged the downward pressure on inflation exercised by the drop in oil prices.
Much anticipated monthly payrolls data is due later this week as the Fed mulls whether to raise rates for the first time since 2006.
The comments saw an uptick in bets on a September increase, with the probability of a hike at the Fed’s next meeting at 48 percent, based on the assumption that the effective Fed funds rate will average 0.375 percent after the first increase. That compared with the 38 percent chance priced in earlier on Tuesday.