Stocks hemmed in by rate risks; yuan wobbles

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Key Points

SINGAPORE (Reuters) Asian equities climbed on Tuesday but could not break this months 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...

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...

Much like in 2016, when the BOJ cut rates to negative and (dollar/yen) went down, this months BOJ decision to exit negative rates is a nothingburger and a red herring for (dollar/yen), said Spectra Markets President Brent Donnelly...

The pair continues to follow some combination of U.S. yields and Nikkei, with yields the primary driver.. Chinas 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...

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