Asian Stock Markets
Asian shares fell the most in over a year on Monday as fears of
resurgent inflation battered bonds, toppled Wall Street from record
highs and sparked speculation that central banks globally might be
forced to tighten policy more aggressively.
MSCI’s broadest index of Asia-Pacific shares outside Japan shed as much as 2 percent in the largest daily drop since late 2016. It was last down 1.4 percent.
E-Mini futures for the S&P 500 fell another 0.2 percent, suggesting further losses in U.S. markets later in the session. Dow futures slipped 0.4 percent while FTSE futures lost 1.1 percent.
Asian markets were covered in a sea of red, with every single bourse but one stumbling. China’s Shanghai Composite index gave up early losses to be up 0.5 percent.
Japan’s Nikkei sank 2.2 percent, while Australia’s main index lost 1.6 percent and Hong Kong’s Hang Seng index declined 1.4 percent.
Investors were spooked by Friday’s U.S. payrolls report which showed wages growing at their fastest pace in more than 8-1/2 years and fuelling inflation expectations.
Futures markets reacted by pricing in the risk of three, or even more, interest rate rises from the Federal Reserve this year.
Brisbane-based chief economist at Australian state pension fund QIC.
Yields on 10-year U.S. Treasury paper were up at a four-year peak of 2.86 percent, having jumped almost 7 basis points on Friday.
The 2-year yield was near a nine-year top at 2.162 percent, tightening financial conditions and offering a more competitive return compared to equities.
The dividend return of the Dow, for instance, was 2.13 percent.
Faster rate rises by the Fed would be negative for emerging markets and commodity currencies, said Deutsche Bank macro strategist Alan Ruskin.
Both the Australian and New Zealand dollars fell sharply in the wake of the job numbers, along with a range of Asian currencies.
MSCI’s broadest index of Asia-Pacific shares outside Japan shed as much as 2 percent in the largest daily drop since late 2016. It was last down 1.4 percent.
E-Mini futures for the S&P 500 fell another 0.2 percent, suggesting further losses in U.S. markets later in the session. Dow futures slipped 0.4 percent while FTSE futures lost 1.1 percent.
Asian markets were covered in a sea of red, with every single bourse but one stumbling. China’s Shanghai Composite index gave up early losses to be up 0.5 percent.
Japan’s Nikkei sank 2.2 percent, while Australia’s main index lost 1.6 percent and Hong Kong’s Hang Seng index declined 1.4 percent.
Investors were spooked by Friday’s U.S. payrolls report which showed wages growing at their fastest pace in more than 8-1/2 years and fuelling inflation expectations.
Futures markets reacted by pricing in the risk of three, or even more, interest rate rises from the Federal Reserve this year.
Brisbane-based chief economist at Australian state pension fund QIC.
Yields on 10-year U.S. Treasury paper were up at a four-year peak of 2.86 percent, having jumped almost 7 basis points on Friday.
The 2-year yield was near a nine-year top at 2.162 percent, tightening financial conditions and offering a more competitive return compared to equities.
The dividend return of the Dow, for instance, was 2.13 percent.
Faster rate rises by the Fed would be negative for emerging markets and commodity currencies, said Deutsche Bank macro strategist Alan Ruskin.
Both the Australian and New Zealand dollars fell sharply in the wake of the job numbers, along with a range of Asian currencies.
No comments:
Post a Comment