Asian Stocks Pare Losses; Bond Yields Tick Higher: Markets WrapBy
10-year Treasury yield holds above 2.9% after bond decline
Tech shares under pressure on Taiwan Semi’s weak forecast
Asian stocks pared losses even as technology shares came under earnings-related pressure. Treasuries steadied after the global climb in yields that gripped markets early in 2018 made a comeback, spurred in part by recent gains in commodity prices.
Stocks in Hong Kong and Australia fluctuated while Japanese shares rebounded as the yen weakened. Tech shares were still the region’s biggest losers after Taiwan Semiconductor Manufacturing Co.’s disappointing forecast rekindled concerns the handset boom is waning. Australian bonds tracked losses overnight in government debt markets from the U.K. to Germany and the U.S., where 10-year Treasury yields breached 2.90 percent. The dollar extended this week’s advance.
While investors debate the cause of the decline in sovereign debt, bond market gauges showed an increase in expectations for U.S. inflation after recent torrid gains in metals from aluminum to nickel. Trade remains in focus with the U.S. Treasury Department considering using an emergency law to curb Chinese investments in sensitive technologies.
Elsewhere, the Swiss franc weakened past 1.20 per euro for the first time since the country’s central bank shocked markets in January 2015 with its decision to remove the cap on the currency.
Terminal users can read more in our markets live blog.
Here are the main moves in markets:
- The MSCI Asia Pacific Index declined 0.4 percent as of 11:29 a.m. Tokyo time.
- Topix index rose 0.3 percent.
- Hong Kong’s Hang Seng Index added 0.1 percent.
- Kospi index decreased 0.2 percent.
- Australia’s S&P/ASX 200 Index rose less than 0.05 percent.
- Futures on the S&P 500 Index rose 0.1 percent.
- The Bloomberg Dollar Spot Index rose 0.1 percent.
- The Japanese yen declined 0.3 percent to 107.65 per dollar.
- The euro fell less than 0.05 percent to $1.2341.
- The yield on 10-year Treasuries rose one basis point to 2.92 percent.
- Japan’s 10-year yield rose one basis point to 0.048 percent.
- Australia’s 10-year yield advanced four basis points to 2.822 percent.
- West Texas Intermediate crude rose 0.2 percent to $68.46 a barrel.
- Gold fell 0.2 percent to $1,343.29 an ounce.
- LME copper rose less than 0.05 percent to $6,987.00 per metric ton.
Read more: http://www.bloomberg.com/