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Stocks advanced, with US futures bouncing back from tech earnings worries while Hong Kong’s benchmark gauge rallied for a second day.

An index of global shares headed for the fifth day of gains, its longest stretch in more than two months, amid growing expectations of moderating US rate hikes.

A tech rally powered Hong Kong shares to further erode losses incurred earlier this week.

Japanese stocks led declines in Asia.

The dollar stabilised after a two-day drop and the offshore yuan gave up some of Wednesday’s gains.

The yield on the 10-year Treasury bond sat around 4 percent after inching below the threshold earlier, with investors positioning for less aggressive rate hikes as earnings and economic data indicate a slowdown. The benchmark US yield has dropped more than 20 basis points over the past two days.

Amid the challenges for equities investors, central banks are providing some optimistic signals that less aggressive monetary tightening may be on the horizon. The Bank of Canada raised interest rates by a smaller amount than expected on Wednesday, adding to suggestions that the Federal Reserve is also getting closer to shifting down in gears.

A contraction in services and manufacturing and fewer new home sales showed the Fed’s efforts to cool the economy seem to be bearing some fruit. Still, economists expect the Fed to hike by 75 basis points for the fourth time in a row when it meets next week.

“The only reprieve that will cause them to pause will be signs that inflation is subsiding and we’re not quite there,” said Nancy Daoud. – Bloomberg