• Equities in Asia are set for a cautious start Wednesday after US stocks and bonds sold off as investors reined in bets for Federal Reserve rate cuts this year.
• Australian shares and Hong Kong equity futures fell while contracts for Japanese benchmarks edged higher, helped along by a weaker yen.
• The Nasdaq Golden Dragon China Index, a gauge of US-listed Chinese shares, fell 3.8% Tuesday while the S&P 500 eased 0.4% lower. The moves weighed on a gauge of global equities, which fell 0.7% on the day.
• The bond market responded to a recalibration of Fed rate cut expectations. Treasuries declined, pushing yields around 12 basis points higher Tuesday for the 10-year note. Swaps market pricing for a rate cut in March inched lower to around 65% from 80% on Friday.