(Bloomberg) — Asian equities were poised for a cautious open after US stocks edged lower and Treasuries sold heavily as solid US factory data reinforced speculation that the Federal Reserve will be in no rush to cut interest rates.
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Equity futures for Japan inched higher early Tuesday, helped along by a weaker yen, while Australian and Hong Kong equity markets will return after holidays. The S&P 500 fell 0.2% Monday, while the Nasdaq rose by the same margin during the session.
Treasuries fell across the curve Monday — with 10-year yields climbing over 10 basis points — as manufacturing unexpectedly expanded for the first time since September 2022 — while input costs climbed. Following the report, the amount of Fed easing priced into swap contracts for this year slid to around 65 basis points — less than forecast by policymakers. Equities also lost traction after the S&P 500 notched its fifth-straight…
