"Asia shares surge as Powell's remarks spark optimism, stocks rally"
Asian shares and bonds rallied as Federal Reserve Chair Jerome Powell's non-committal stance on future rate hikes fueled optimism that U.S. interest rates have peaked and cuts are on the way. Markets trimmed bets on rate hikes in December and January, with expectations of rate cuts beginning in June 2024. The Bank of England is also expected to conclude its tightening cycle. Investors are awaiting Apple's quarterly revenue report, which is expected to show a 1% decrease. The MSCI's broadest index of Asia-Pacific shares outside Japan surged, while China's blue chips slipped and Hong Kong's Hang Seng index jumped. Wall Street and Treasuries also saw gains, with the benchmark 10-year Treasury yield easing to its lowest level in over two weeks. The retreat in Treasury yields pulled down the U.S. dollar modestly, while the Aussie and kiwi dollars rose. The yen regained ground, and oil prices traded higher.