30 May 2016 at 1:52 GMT
Japanese shares drove gains in Asia as the yen extended its slump against the dollar, amid confidence the global economy can withstand an interest-rate hike that the Federal Reserve chief said could come in the next few months. Gold and bonds retreated. The dollar climbed to a one-month high against the JPY and rallied versus emerging-market currencies in Asia after Fed chair Janet Yellen said late Friday that the improving economy meant another rate hike would probably be in order “in the coming months”. Australian government debt paced last session’s decline in Treasuries, with American and UK markets closed for a holiday. Gold fell a ninth day, set for its longest slump in more than a year as the US rate outlook dampened its appeal versus interest-bearing assets. Yellen affirmed what a number of her officials had been saying all of last week, that evidence of strength in the US economy meant tighter monetary policy could be countenanced. Bets on a rate hike remain at 30% for June.
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