By Wayne Cole
SYDNEY (Reuters) – Asian equities rallied on Wednesday as rising government bond yields boosted the dollar as investors waited eagerly to see if the world's most powerful central banker expected US easing confirm or confuse this month.
The broadest MSCI index for Asia-Pacific equities outside Japan () gained 0.4% after three loss periods.
South Korea () gained 0.4%, while the Japanese Nikkei () index lagged 0.1%. , E-mini futures for the S & P 500 () were flat, while EUROSTOXX () and FTSE () futures indicated low opening gains in Europe.
Chinese blue chips () barely moved as data showed that despite a surge, inflation remained stubbornly subdued on pork prices.
A worrying lack of inflation around the world is one of the reasons why investors are reluctant to note that US Federal Reserve Chairman Jerome Powell is wary of giving his testimony before the congress on Wednesday. At the Fed meeting from July 30 to 31
"We still believe there is a 25bps chance of a reduction in the sum insured," said Kevin Cummins, a leading US economist at NatWest Markets.
] "The Fed's interest rate cuts are not just about growth, but also about inflation, which remains well below target, and inflation expectations, which trended lower before the Fed signaled the likelihood of interest rate cuts. "
Overnight, Atlanta Fed Bank President Raphael Bostic said the central bank is discussing the risks and benefits of a "slightly hotter" US economy.
In the background, US and Chinese trade officials held constructive "talks on telephone trading on Tuesday, White House economic adviser Larry Kudlow said."
Wall Street had been duly prudent on Tuesday, with the Dow ) fell by 0.08%, while the S & P 500 () gained 0.12% and the Nasdaq () 0.54%.  LITTLE INCREASE
The slowdown in US interest-rate fever has led to this Bonds made only a small part of their strong rally, with yields on biennial government bonds rising from the recent lows of 1.696% to 1.917%.
This in turn helped move the dollar from a June low of 95.843 to 97.500 () rose.
The Dollar also rose to 108.90 yen, while the Euro fell to 1.11206 () and was only $ 1.1412 a few weeks ago.
The Mexican peso suffered on Tuesday under pressure, as the gem ßigte finance minister, Carlos Urzua, suddenly resigned and "extremism" was leading in economic policy.
The Canadian dollar was on the defensive ahead of an interest meeting of the Bank of Canada should policymakers try to slow the recent rally in the currency.
Dollar gains detracted from the gold's shine, which slipped 0.3% to $ 1,393.68 per ounce.
The oil price was helped by tensions in the Middle East and news that US stooppiles fell for a fourth consecutive week, easing concerns over oversupply.
Brent crude () futures rose 64 cents to $ 64.80, while US crude (+) rose 82 cents to $ 58.65 a barrel.