Stocks in the Asia-Pacific region fell after Wall Street stocks sold amid rising US Treasury yields, which were pushed higher by rising inflation expectations.
In morning trading in the region on Friday morning, China’s CSI 300 index of stocks listed in Shanghai and Shenzhen fell 1.4% while Hong Kong’s Hang Seng fell 1.5%. South Korea’s Kospi index fell 1 percent and Japan’s benchmark Topix fell 0.4 percent. The Australian S & P / ASX 200 lost 0.3%.
The falls in Asia came after the tech-focused Nasdaq Composite stock index on Wall Street tumbled 3 percent Thursday. The larger S&P 500 fell 1.5%, breaking out of a record closing level since Wednesday.
These declines were spurred by rising yields on US Treasuries, against which borrowing costs in many financial markets are compared. The rise in yields, which indicates a decline in demand for bonds, has forced investors to change the price of high-growth stocks to reflect changes in interest rate expectations.
On Thursday, the 10-year U.S. Treasury yield rose to 1.75%, surpassing 1.7% for the first time since the early 2020 stock market tumult triggered by the emergence of Covid-19.
The 10-year Treasury yield was flat in Asian trading on Friday at 1.713 percent.
“It spills over into wider markets,” said Robert Carnell, head of Asia-Pacific research at ING, of the treasury bill liquidation, highlighting falling prices for gold, oil and gas. bitcoin.
On Friday, S&P 500 stock futures rose 0.3% in Asian trading, while those of London’s FTSE 100 fell 0.6%.
Investors are also monitoring the first high-level meeting between U.S. and Chinese officials since Biden took office, which began in Alaska with fiery exchanges between the two powers.
Elsewhere on Friday, the central bank of Japan reveal the results of its largest policy review since 2016.
Oil prices fell slightly after tumbling thursday on concerns about declining demand in China and the United States. Brent, the international benchmark, slipped 0.3% to 63.12 dollars a barrel after falling 7.6% overnight. West Texas Intermediate fell 0.2% to $ 59.89 a barrel after closing 7.1% lower on Thursday, marking the largest one-day decline in the U.S. benchmark in six months.