MIAMI (Reuters) – Asian stocks plummeted Tuesday as U.S. Treasury yields and inflation expectations rose to another round out of the major technical stocks that relied on a massive Wall Street rally at the time of the outbreak. -discharged.
Australia’s S&P / ASX 200 fell 0.11% and South Korea’s Kospi declined 0.87% in early trading. Hong Kong Hang Seng index times rose 0.54%. Japanese markets are closed for public holidays Tuesday.
Oil prices rose on a tight global supply outlook after U.S. production was hit by frigid weather and a close meeting of major crude producers is expected to largely monitor output.
Bond yields have skyrocketed this month as more U.S. fiscal stimulus was expected to boost hopes for a faster global economic recovery.
However, that also fuels inflation expectations, encouraging investors to sell the growth stock that prompted a rally of equities during the pandemic.
“The sale in bonds as a car crash is moving slowly for equity investors,” said Michael McCarthy, chief market strategist at broker CMC Markets in Sydney. “A higher interest rate environment requires investors to consider the opportunity costs of investments. Stocks that have a large loan, or do not provide income for investors, may be particularly at risk. ”
On Wall Street, the Dow Jones industrial average rose 0.09%, earning a small profit. The S&P 500 lost 0.77% and the Nasdaq Composite fell 2.46%.
High-growth stocks, including Apple Inc, Microsoft Corp, Tesla Inc and Amazon.com, pulled the Nasdaq down and the pressure on the S&P 500.
The Australian dollar was trading near equilibrium against the green at $ 0.791 after hitting a new three-year high.
Commodity prices have risen somewhat as the U.S. dollar continues its general weakness. Spot gold added 0.06% to $ 1,809.69 an ounce.
The nationwide MSCI global index, which looks at stock market performance across 45 countries, gained 0.04%.
Federal Reserve Chairman Jerome Powell will deliver his semi-annual testimony before Congress begins Tuesday and seems to reiterate a commitment to keep policy extremely easy as long as necessary to move inflation higher.
U.S. economic growth as measured by gross domestic product is expected to run stronger than at any time in the past 35 years and industrial investment is expected to run twice as fast as the economy. broad, according to Credit Suisse.
MSCI’s broadest index of Asia-Pacific shares outside Japan fell 1.18% on Monday, after slipping from a higher peak last week as the jump in U.S. bonds takes out unsustainable investors.
The dollar index fell 0.287%, with the euro up 0.09% to $ 1.2165. The Japanese yen strengthened 0.06% against the green back at 104.99 per dollar.
Reporting by Echo Wang in Miami; Edited by Sam Holmes