RBNZ said its committee assesses spare capacity remains in the economy, particularly in the labour market.

Hong Kong-listed electric-vehicle shares slid: NIO-SW (09866.HK) down over 5%, Li Auto (02015.HK) down nearly 4% to a post-listing low; SERES (09927.HK), XPeng (09868.HK) and Geely Automobile (00175.HK) also fell.

Deutsche Bank strategists say hawkish signals from Fed Chair Kevin Warsh at Jackson Hole could be reflected at the September meeting, and potential additional US Treasury intervention may make direct long-end steepening positions vulnerable over the coming weeks. Still, on a longer-term, structural horizon they prefer rising term premia and curve-steepening trades, citing weak fundamentals and the view that large-scale fiscal consolidation remains unlikely.