* MSCI Asia-Pacific ex-Japan 0.79% lower
* Shenzhen CSI 300 from China 0.9% lower
* Dollar gains on the euro, the yen as the United States yields ahead
* The Nasdaq falls 2.4%, confirming the correction
SYDNEY / NEW YORK, March 9 (Reuters) – Asian equities were lower on Tuesday as rising bond yields affected technology stocks and corporate valuations in China and Korea and investors left face their fears about inflation as the United States appears to approve a $ 1.9 trillion stimulus package.
MSCI’s broader Asia-Pacific stock index outside of Japan was 0.79% lower, while Korea’s Kospi fell 1.88%, its fourth consecutive session of losses. The Japanese Nikkei reduced pre-session losses to 0.24% higher.
U.S. Treasury Secretary Janet Yellen said Monday that President Joe Biden’s coronavirus aid package would provide sufficient resources to fuel a “very strong” economic recovery in the U.S. and noted that “there are tools” for deal with inflation.
Despite positive indications, investors are still in conflict over whether the stimulus will help global growth pick up more quickly due to the COVID-19 recession or cause the world’s largest economy to overheat and lead to runaway inflation. .
“The chances of seeing more inflation in the economy increase significantly with the monetary policy actions and fiscal policy actions we are seeing around the world,” Goldman Sachs CEO David Solomon said at a conference in Sydney for webcast.
“There is certainly a reasonable outcome in which inflation is accelerating faster than people expect and this will obviously have an impact on markets and volatility.”
The technology sector and other high-value companies have been highly susceptible to rising rates.
Australian equities tracked overnight gains on Wall Street, with the S & P / ASX 200 main index rising to 1.04% on Tuesday. However, the shares of Australian technology slipped for the sixth consecutive session in line with its American counterparts.
The index returned these gains to be only 0.40% higher in the afternoon trading after the fall in technology and a 10% fall in shares of the Insurance Australia Group before an announcement on the insolvency of financial services provider Greensill Capital.
China’s blue-chips were 1% lower, while Hong Kong’s Hang Seng was up 0.9%.
On Wall Street, the Dow advanced, while the Nasdaq fell more than 2%, marking a drop of more than 10% since it closed the high on February 12 and confirmed a correction in the value of the index.
The Dow Jones Industrial Average rose 0.97%, the S&P 500 lost 0.54% and the Nasdaq Composite fell 2.41%.
The pan-European STOXX 600 .STOXX index rose 2.10% and the worldwide MSCI stock level fell 0.02%.
“If rates rise because people are optimistic about economic growth, this continues to support stock prices,” said Tom Hainlin, global investment strategist at Ascent Bank’s private wealth group. American bank in Minneapolis.
U.S. Treasury yields advanced as investors continued to have higher inflation prices and more optimistic outlooks for the U.S. economy as it emerged from the coronavirus pandemic.
The 10-year benchmark yield rose to 1.6029%, from 1.594% late Monday.
In the foreign exchange markets, the dollar index reached a three-and-a-half-month high, rising 0.523%, with the euro 0.06% to $ 1,185.
Oil prices were higher on Tuesday, but were unable to recover gains on Monday after attacks on oil facilities in Saudi Arabia raised prices to a high since the COVID-19 pandemic began.
Brent crude futures rose 33 cents, or 0.51%, to $ 68.57 a barrel. U.S. crude futures were 27 cents, up 0.42%, at $ 65.32.
Spot gold added 0.4% to $ 1,688.42 an ounce.
Report by Paulina Duran and Matt Scuffham; Edited by Sam Holmes and Christian Schmollingr