BANGKOK – Shares fell Wednesday in Asia when investors stressed the possibility that inflation could encourage central banks to change their ultra-low interest rate policies.
Hang Seng HSI at Hong Kong,
led the decline, losing 2%. Nikkei 225 NIK at Tokyo,
0.9% shed and in Seoul the Kospi 180721,
0.9% lower margin. S&P / ASX 200 XJO Australia,
lost 1%, while the Shanghai Composite SHCOMP index,
he gave 1.5%. Stocks Held in Singapore STI,
but slipped in Taiwan Y9999,
and Indonesia JAKIDX,
Investors are increasingly focused on major bond yields and how it affects stock valuations.
The high level of stimulus pumped into economies has been a factor in pushing bond yields higher, deterring some investors while re-investing. revived concerns about inflation that have not been close to more than a decade.
The yield on Finance’s 10-year note, which recently peaked, was stable at 1.34% on Wednesday.
When bond yields rise, stock prices tend to be negatively impacted by the fact that investors are turning a larger proportion of their money towards a more stable income stream. which bonds give.
Federal Reserve Chairman Jay Powell told Congress Tuesday that the Fed did not see the need to keep its policy on interest rates too low, noting that the next economic recovery “remains uneven and far from perfect.”
The message seemed to have been sent in Asia.
“Rising loan costs are still a key issue at hand although Fed Powell’s depressing remarks helped to offset the fall in U.S. allowances on Tuesday,” Jingyi Pan of IG said in a statement.
However, “Despite optimistic comments about lower rates from U.S. Federal Reserve chairman Jerome Powell, Asian markets continued to face concerns about rising bond yields,” Pan said.
A late-afternoon buyout on Wall Street on Tuesday helped offset the majority of technology-based sales, spurring the S&P 500 SPX,
to his first win after a five-day losing streak.
The indicators index raised a gain of 0.1%, to 3,881.37. Dow Jones industrial average DJIA,
also rose 0.1%, to 31,537.35. The Nasdaq COMP,
lost 0.5% to 13,465.20. The indices were at an all-time high less than two weeks ago.
In other trades, US crude oil benchmark CLJ21,
lost 52 cents to $ 61.15 a barrel in electronic commerce on the New York Mercantile Exchange. He lost 3 cents Tuesday to $ 61.67 a barrel. Brent crude BRNJ21,
the international standard, lost 39 cents to $ 64.09 per barrel.
US Dollar USDJPY,
it rose to 105.44 yen Japanese from 105.24 yen late Tuesday.