Global Markets React to Central Bank Rate Hikes and Mixed Economic Signals

Asian shares fell after Bank of Canada unexpectedly raised interest rates, fueling concerns that the US Federal Reserve may also remain hawkish when it meets next week. The MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.48%, while Japan's Nikkei fell 1%. The Bank of Canada's move comes after Australia also hiked interest rates earlier this week. Economists polled by Reuters expect the Fed to not raise rates at its June 13-14 meeting, but a significant minority expects at least one more hike this year.