Asian stocks built on losses in the U.S., Yen Rises After Kuroda

Asian Stock markets

Asian stocks built on losses in the U.S. on rekindled concerns about what a potential trade war and a more hawkish Federal Reserve could do to global economic growth. 

The yen jumped after Bank of Japan Governor Haruhiko Kuroda discussed the timing of a possible exit from its stimulus policy.

Apan bore the brunt of declines, with the Topix Index extending losses after Kuroda’s comments.

Shares in Hong Kong, China, Australia and South Korea were also weaker after U.S. stocks posted a third day of declines.


Treasuries retreated and German bunds climbed.

The dollar steadied.

The Cboe Volatility Index is up 35 percent this week as Fed chair Jerome Powell opened the door to speculation that the central bank may quicken the pace of monetary tightening, a move investors worry could derail economic growth.

In his Senate testimony Thursday, he called for gradual interest rate hikes and said the economy wasn’t overheating.

Elsewhere, oil steadied after a decline on concerns about increasing U.S. crude production.

Bitcoin climbed above $11,000 on course to post a 12 percent increase this week.

Terminal users can read more in our markets blog.

Stocks

• The MSCI Asia Pacific Index fell 0.9 percent as of 4:07 p.m. Tokyo time.
• Topix index declined 1.8 percent.
• Hong Kong’s Hang Seng Index declined 1.6 percent.
• Kospi index fell 1 percent.
• Australia’s S&P/ASX 200 Index fell 0.7 percent.
• Futures on the S&P 500 Index rose less than 0.05 percent.

Bonds

• The yield on 10-year Treasuries rose one basis point to 2.82 percent.
• Japan’s 10-year yield climbed two basis points to 0.063 percent.
• Australia’s 10-year yield fell two basis points to 2.737 percent.