Mumbai, 26 Mar (Commoditiescontrol): Asian equities edged higher on Tuesday but were unable to break this month's highs as mixed messages from U.S. Federal Reserve policymakers left doubts hanging over the timing of interest rate cuts.
The risk of Japan intervening to prevent further falls in the yen put a little pressure on the dollar, however it rose against the yuan on speculation that China may tolerate a weaker currency.
MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.6%, with gains for South Korean chipmakers SK Hynix and Samsung Electronics leading the Kospi up 1.2%. Japan's rocketing Nikkei was steady, as was the yen at 151.31 per dollar.
Overnight, Chicago Fed President Austan Goolsbee said he had pencilled in three rate cuts this year, while Fed Governor Lisa Cook urged caution and Atlanta Fed President Raphael Bostic re-iterated Friday remarks trimming his expectations to one cut.
The diversity of views throws a few wildcards into the policy outlook while markets wait on the next U.S. inflation indicators due when many markets will be closed for Good Friday.
U.S. two-year yields, which track short-term interest rate expectations, rose in New York trade overnight then fell 4.5 basis points in the Asia morning to 4.58%. S&P 500 futures rose 0.1% and the cash index closed 0.3% lower overnight.
The Bank of Japan (BOJ) lifted interest rates last week but the yen has fallen near to three-decade lows on the dollar.
China's yuan opened steady after a stronger-than-expected fixing of its trading band, but selling pressure soon drove it to the weak side of its 200-day moving average at 7.2165 per dollar.
Markets were unsettled by a sharp drop in the yuan on Friday, after months of tight trading, and some speculate China is loosening its grip on the currency to allow it to fall.
Later on Tuesday, the Reserve Bank of New Zealand's chief economist is due to speak and U.S. manufacturing, services and consumer confidence figures are due. U.S. core PCE data is due on Friday.
Gold and oil prices were broadly steady in commodities trade, with spot gold at $2,169 an ounce and Brent crude futures up 24 cents a barrel to $86.99. Bitcoin hovered just above $70,000 after rising sharply on Monday.
(By Commoditiescontrol Bureau: 09820130172)
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