According to Bloomberg, futures for Tokyo, Hong Kong, and Sydney indicated further gains following a regional benchmark rise on Tuesday. The easing of inflationary pressures has increased confidence that US officials may start lowering borrowing costs while shifting their focus to the labor market, which is showing more signs of slowing down. Fed Bank of Atlanta President Raphael Bostic noted that the disinflationary data is being celebrated by investors, not for indicating a slowing economy in the US, but for solidifying improving liquidity conditions ahead, with anticipated rate cuts starting presumably in September.

In New Zealand, there is uncertainty among economists and investors about whether the central bank will begin reversing course and cut its key rate by 25 basis points to 5.25% at its meeting on Wednesday. The US market is also showing signs that the Federal Reserve may cut rates in September, as the runway appears clear for such a move. This story was produced with the assistance of Bloomberg Automation.