• Asian equities were primed to rally Thursday after US stocks touched fresh highs as the Federal Reserve indicated it would meet market expectations with three rate cuts this year.
• Australian shares and equity futures for Japan and Hong Kong all advanced. Japanese stocks are set to re-open after a holiday Wednesday. The S&P 500 index rose 0.9% to a new high while the tech-heavy Nasdaq 100 index, which is more sensitive to policy, rose 1.2%.
• The Magnificent Seven group of mega-caps powered to new highs. US small-caps, which typically do well when the economy is expanding, rose almost 2% for the best session in more than a month.
• Australian and New Zealand bonds rallied, echoing a rise in Treasuries. Gains were tilted toward the short end with two-year yields falling eight basis points and the 10-year falling by two basis points. The moves reflected an increase in expectations the Fed may cut as early as June. The dollar extended losses.