Shares in Asian developed markets rose and the dollar and Swiss franc eased on Wednesday as investors bet that China's latest interest rate rise would not derail hopes of a sustained economic recovery.
Japan's Nikkei average extended its gains for a fourth day and hit a fresh nine-month high on Wednesday, with Toyota Motor Corp expected to lift the market after better-than-expected earnings.
World stocks and industrial metals managed to claw their way slightly higher while oil prices fell in volatile trade on Tuesday after China raised interest rates for the second time in six weeks, spurring worries that global growth will be crimped.
Capital Economics Group's China economist, Mark Williams, in an interview with CNBC-TV18’s Elan Dutta discussed the recent rate hike and what different emerging markets are doing to curb core inflation. He says, one more rate hike is on the anvil in 2011.