"Bond Market Reacts Positively to Fed's Talk of Rate Cuts, Boosting Kiwi Currency"

Treasury yields and the dollar reached multi-month lows after a Federal Reserve official hinted at potential interest rate cuts, while the New Zealand dollar surged following the central bank's suggestion of another rate hike if inflation remains stubborn. Asian stocks experienced mixed performance, with MSCI's broadest index of Asia-Pacific shares outside Japan briefly reaching a one-week high before being dragged down by weakness in Hong Kong tech shares. The euro, yen, sterling, Australian dollar, yuan, Swiss franc, and several Asian emerging market currencies also reached multi-month highs against the dollar, while gold hit a seven-month high. The remarks by Federal Reserve Governor Christopher Waller, along with previous comments by Fed Chair Jerome Powell, have fueled a two-week rally in global stocks and bonds, except in China where concerns about the economy and a deepening property crisis persist.