(Bloomberg) – Asian equities followed U.S. peers lower after Federal Reserve Chairman Jerome Powell refrained from pushing back toward the recent rise in bond yields. Treasury kept a decline.
The technology sector helped push MSCI Inc.’s benchmark for equities in Asia-Pacific to a one-month low after the Nasdaq 100 extended losses to nearly 10% from February’s high. Nasdaq 100 contracts underperformed as U.S. stock futures slipped after the S&P 500 erased almost all of its 2021 gains.
Shares slipped from Jan and South Korea to China, which set an economic growth target of more than 6% in 2021 at the National People’s Congress. In Australia, bond yields pushed higher, tracking a jump in the 10-year Treasury to 1.56%, which lifted the yield curve to the steepest point since 2015. The US dollar strengthened against almost all major peers.
Oil prices following the OPEC + alliance surprised traders with their decision to keep production unchanged. Bitcoin fell with other risk assets.
Powell noted the recent start-up in dividends without suggesting intervention, saying he would be “concerned about disorderly conduct.” While some investors see interest rates moving as a sign of economic strength, others are still concerned about rising inflation and the impact of higher interest rates on higher equity values.
“It makes logical and intuitive sense that Treasury’s interest rates should go up to 1.50% or 2%, but we are concerned about the rest of the market about the speed at which it is getting there,” said Mona Mahajan, investment strategist at Allianz Global. Investors LLC.
The stock market momentum is not getting any sympathy from the Fed
Meanwhile, the U.S. Senate voted to raise a $ 1.9 trillion bill backed by President Joe Biden, launching a debate expected to end this weekend with evidence of the nation’s sixth stimulus since the pandemic-triggered lockdown that started a year ago.
The US employment report from February on Friday will provide an update on the speed and direction of the country’s recovery in the labor market.
These are some of the key features of the Tokyo 10:33 market:
S&P 500 futures fell 0.7%. The meter withdrew 1.3% on Thursday. Jan’s Topix index slipped 1.2%. South Korea’s Kospi index fell 1.8%. Australia’s S & P / ASX 200 fell 1.4%. Hong Kong’s Hang Seng decline fell 2.4%. Shanghai Composite lost 1.2%.
The Bloomberg Dollar Spot Index rose 0.1%. The euro dipped 0.1% to $ 1.1959. The Janese yen added 0.1% to 107.85 per share. Dollar.
The yield on 10-year government bonds rose by 1.56%. Australia’s 10 – year interest rate rose six basis points to 1.83%.
West Texas Intermediate Crude Oil jumped 0.3% to $ 64.03 per share. Barrel, and gold fell 0.4% to $ 1,691.92 an ounce.
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