Asian stocks looked set to follow a bounce in the U.S. after Federal Reserve Chair Jerome Powell reassured investors the central bank will tackle inflation to extend the economic expansion.
Shares in Australia advanced and futures rose in Japan and Hong Kong.
U.S. contracts fluctuated after the S&P 500 halted a five-day slide and the Nasdaq 100 outperformed. Treasuries also found support after a solid three-year note sale. The yield on the 10-year note dipped, while the curve flattened.
The dollar declined and commodity-linked currencies like the Australian and Canadian dollars climbed alongside a jump in oil prices.
Powell told the Senate Banking Committee that officials won’t hesitate to act if needed to contain price pressures. He also said the Fed will probably start shrinking its balance sheet this year. He noted the runoff would be quicker than the last time the central bank shrank its balance sheet because the economy was in a much stronger position.
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