Reuters

Asian shares shrugged off a lackluster start and pushed higher, while the dollar edged up as investors priced in more U.S. rate hikes after upbeat economic data.

A cautious approach to monetary policy may be prudent during times of uncertainty like today, but caution has its limits because the trade-off can be financial instability, says BOC’s Wilkins.

South Korea and Canada have signed a standing bilateral currency swap agreement that will allow both countries to provide liquidity for the counterparty to support domestic financial stability, the Bank of Korea said on Thursday.

Oil prices dropped on Wednesday after the U.S. government reported an unexpected increase in crude and gasoline stockpiles, but an increase in refining runs and a drawdown in distillates helped prices bounce off session lows.

The dollar trimmed losses against a basket of major currencies on Wednesday, after data showed a surprise rise in retail sales last month as well as an uptick in underlying inflation, cementing expectations for an interest rate hike in December.

The head of the U.S. Senate Finance Committee proposed major changes to a Republican tax reform plan, adding a repeal of Obamacare’s health insurance mandate and making corporate tax cuts permanent while ending individual cuts in 2025.

U.S. consumer prices barely rose in October as the boost to gasoline prices from hurricane-related disruptions to Gulf Coast oil refineries was unwound, but rising rents and healthcare costs pointed to a gradual buildup of underlying inflation.

Base metals slid sharply on Wednesday as data from China stoked fears of a slowdown in the world’s top commodities consumer, with falls in oil and global stocks indicating broad-based risk aversion amongst investors.

 A fall in commodity stocks and continued profit taking sent European shares to an eight-week low on Wednesday, but Airbus rallied after winning its biggest order.

The euro popped above the 1.18 line for the first time in three weeks on Wednesday as investors resumed buying European equities while the dollar found itself on the back foot for a second day as U.S. bond yields decline.