- England captain Stokes back from injury for second Pakistan Test
- Shanghai stocks gain after stimulus briefing as markets rally
- Shanghai stocks gain after stimulus briefing as Asian markets rally
- South Korea military says 'fully ready' as drone flights anger North
- Pakistan 'vigilantes' behind rise in online blasphemy cases
- Nearly 90, but opera legend Kabaivanska is still calling tune
- Smith experiment as Test opener over, Green out of India series
- With inflation down, ECB eyes faster tempo of rate cuts
- Is life possible on a Jupiter moon? NASA goes to investigate
- Dodgers crush Mets 9-0 in MLB playoff series opener
- South Korea military says 'fully ready' as drone tensions soar
- Cummins back, Marsh and Head out of Pakistan ODI series
- Shanghai stocks swing after stimulus briefing as most of Asia rises
- New Zealand's Latham promises 'no fear' as he takes charge for India Tests
- Kyrgios vows to 'shut up' doubters with December comeback
- Public hearings start into death of Brit by Russian nerve agent
- Ex-Stasi officer faces verdict over 1974 Berlin border killing
- Role of government, poverty research tipped for economics Nobel
- 'Stolen satire' feeds US election misinformation
- Rookie McCarty captures first PGA Tour title in Black Desert Championship
- Australia all-rounder Green ruled out of India Test series
- Seeing double in Nigeria's 'twins capital of the world'
- UK FM to attend EU foreign affairs talks for first time in 2 years
- Carter, Billups among 13 new Basketball Hall of Fame inductees
- Ravens rip Commanders as Lions lose NFL sacks leader in win
- Hezbollah drone strike kills four, wounds dozens at Israeli base
- China says launches military drills around Taiwan
- Stewart leads Liberty past Lynx to level WNBA Finals
- England return to winning ways in Nations League, Austria thrash Norway
- UN chief says attacks on UNIFIL 'may constitute a war crime'
- Ravens outlast Commanders while Bucs batter Saints in NFL
- Dozens hurt in Israel as Hezbollah claims drone strike
- England deserve 'world class' coach: Carsley
- Burkina Faso win to become first qualifiers for 2025 AFCON
- AC Milan's Pulisic among five out for USA match in Mexico
- France's Amandine Henry retires from international football
- Centre-left set to win pro-Ukraine Lithuania's vote
- India's World Cup hopes in Pakistan hands after Australia defeat
- Zelensky says NKorea sending troops to Russian army
- England beat Finland to get back on track
- King and Lewis propel West Indies to T20 triumph over Sri Lanka
- Pre-Halloween 'Terrifier' lands atop North America box office
- 'I still plan to compete and play next season,' says Djokovic
- Harris, Trump seek advantage in knife-edge election battle
- Chepngetich shatters women's marathon world record in Chicago
- Kamindu and Asalanka power Sri Lanka to 179 against West Indies
- Chepngetich shatters women's marathon world record as Korir wins in Chicago
- Spain send injured Yamal home 'to prioritise player's health'
- In milestone, SpaceX 'catches' megarocket booster after test flight
- Iraq walks fine line with pro-Iran factions to avoid war
Asian markets drop as traders temper rate cut bets
Stocks fell Tuesday, extending the sell-off seen on Wall Street, with analysts warning November's rally fuelled by bets on interest rate cuts may have gone too far, forcing traders to take a step back.
Markets surged last month as data pointing to slowing inflation and softer job markets combined with a dovish turn by Federal Reserve officials to stoke expectations they will next year begin loosening monetary policy.
Those hopes were boosted Friday when Fed chief Jerome Powell said rates were "well into restrictive territory".
More than one percentage point of reductions through to next December have been priced in by futures traders, according to Bloomberg News.
But observers said the euphoria may have caused investors to get ahead of themselves and the next few weeks could be a little bumpy, while they remained broadly upbeat about the new year.
Morgan Stanley strategist Michael Wilson said in a note that this month could see "near-term volatility in both rates and equities" before positive seasonal trends and "January effect" provide a lift in January.
All three main indexes in New York ended in the red, with the S&P 500 coming off a nine percent November rally.
And the selling continued in Asia.
Hong Kong tumbled more than two percent while Tokyo and Sydney shed more than one percent apiece.
Shanghai, Seoul, Singapore, Bangkok, Wellington, Taipei, Manila and Jakarta were also well down.
"The biggest near-term risk for the markets could simply be that after a phenomenal one-month rally, a period of consolidation may be a necessary breather," said UBS Global Wealth Management's Jason Draho.
"A lot of good news is priced in, and investors seeing little imminent downside risk does make the markets vulnerable to even small disappointments."
Goldman Sachs strategists said "markets are approaching the limits of what can plausibly be priced without attaching material odds of a recession in the near term".
Traders are now awaiting the release later in the week of key US jobs data, with a miss to the downside of expectations likely to ramp up optimism for a rate cut in early 2024. However, a forecast-beating reading could jolt markets.
That is followed next week by the Fed's policy meeting. Most watchers are tipping it to stand pat on rates, though its statement will be parsed for any clues about plans for the next few months.
Gold prices dropped after briefly striking a record high Monday on expectations for a rate cut, while bitcoin was also slightly lower, having the day before topped $42,000 for the first time since April last year.
The cryptocurrency has been boosted by hopes that firms including BlackRock will be given US approval to sell the first spot bitcoin exchange-traded funds.
- Key figures around 0700 GMT -
Tokyo - Nikkei 225: DOWN 1.4 percent at 32,775.82 (close)
Hong Kong - Hang Seng Index: DOWN 2.2 percent at 16,285.93
Shanghai - Composite: DOWN 1.7 percent at 2,972.30 (close)
Dollar/yen: DOWN at 146.80 yen from 147.19 yen on Monday
Euro/dollar: DOWN at $1.0836 from $1.0839
Pound/dollar: UP at $1.2634 from $1.2632
Euro/pound: UP at 85.78 pence from 85.77 pence
West Texas Intermediate: FLAT percent at $73.04 per barrel
Brent North Sea crude: DOWN 0.1 percent at $77.99 per barrel
New York - Dow: DOWN 0.1 percent at 36,204.44 (close)
London - FTSE 100: DOWN 0.2 percent at 7,512.96 (close)
M.A.Colin--AMWN