BANGKOK – Shares fell on Wednesday in Asia as investors weighed in on the possibility that inflation could push central banks to adjust their ultra-low interest rate policies.
Hang Seng HSI of Hong Kong,
led the decline, losing 2%. Nikkei 225 NIK from Tokyo,
launched 0.9% and in Seoul the Kospi 180721,
bordered 0.9% lower. S & P / ASX 200 XJO from Australia,
lost 1%, while the Shanghai SHCOMP composite index,
gave up 1.5%. Shares gained in Singapore ITS,
but fell to Taiwan Y9999,
and Indonesia JAKIDX,
Investors remain increasingly focused on increasing bond yields and how they affect stock valuations.
The large amount of stimulus being pumped into the economies has been a factor that has driven bond yields to rise, prompting some investors to pause as it revives inflation concerns that have been almost non-existent for more than a decade.
The yield on the 10-year Treasury bill, which has risen recently, remained at 1.34% on Wednesday.
As bond yields increase, stock prices tend to be negatively affected as investors convert an increasing share of their money into the more stable income stream that bonds provide.
Federal Reserve Chairman Jay Powell told Congress Tuesday that the Fed did not see the need to alter its policy of keeping interest rates ultra low, noting that the economic recovery “remains uneven. and far from complete. “
The message seemed to be off in Asia.
“Rising debt costs remain the most common issue, although Fed Powell’s words had helped stop the fall in U.S. stocks on Tuesday,” IG’s Jingyi Pan said in a comment.
However, “Despite reassuring comments of lower rates from U.S. Federal Reserve Chairman Jerome Powell, Asian markets continued to worry about rising bond yields.” said Pan.
A savings on afternoon afternoon shopping on Wall Street on Tuesday helped reverse most technology-focused sales, boosting the S&P 500 SPX,
to his first win after five days lost.
The benchmark index gained 0.1% to 3,881.37. The Dow Jones Industrial Average DJIA,
it also rose 0.1% to 31,537.35. The Nasdaq COMP,
lost 0.5% to 13,465.20. The indices were all-time highs less than two weeks ago.
In other operations, US crude oil reference CLJ21,
lost 52 cents, to $ 61.15 per barrel, in e-commerce on the New York Stock Exchange. It lost 3 cents Tuesday to $ 61.67 a barrel. Brent cru BRNJ21,
the international standard, lost 39 cents to $ 64.09 a barrel.
The US Dollar USDJPY,
rose to 105.44 Japanese yen from 105.24 yen on Tuesday afternoon.