The Asian sell-off wave engulfed Nikkei 225

The major stock indexes in Asia – Pacific fell deeply on February 26 trading day after Wall Street last night “red fire” because of higher bond yields.

On February 26, Nikkei 225 slipped deepest among major stock indexes in Asia. Documentary photo: AFP

“Red fire” because the yield of US treasury bonds

In Japan, the Nikkei 225 fell the deepest among major stock indexes in Asia after losing 3.99% and closing to 28,966.01, while the Topix index slipped 3.21% to 1,864. , 49 points. South Korea’s Kospi index slipped 2.8% to 3,012.95 points.

On the Hong Kong market, the Hang Seng index ended the February 26 session with a decrease of 3.64% to 28,980.21 points. The red also covered mainland Chinese stocks. The Shanghai Composite Index lost 2.12% to 3,509.08 points, while the Shenzhen Component fell 2.167% to 14,507.45.

Australia’s S & P / ASX 200 also “red fire” and lost 2.35% to 6,673.30 points. Overall, the MSCI Asia-Pacific (excluding Japan) decreased by 3.29%.

Asian investors are watching the fluctuations of US Treasury yields, after the 10-year US Treasury bond yields on February 25 trading day hit their highest level in more than a year when they reached the threshold. 1.6%.

“Bond yields are rising because investors are optimistic. They believe a strong rebound is imminent and prices will rise as demand rebounds,” said Kathy Lien, Operations Manager of the War Division. Forex strategy at BK Asset Management Asset Management Fund commented.

Investors’ optimism about the recent economic recovery outlook has increased thanks to favorable factors such as the positive developments in Covid-19 vaccine development as many major economies have vaccinated people. widespread.

Destination Wealth Management Fund founder and CEO Michael Yoshikami “is not surprised” when the yield on 10-year US Treasury bonds reached 1.5 – 1.6%.

“I think if (inflation) has started to go above 2 and 2.5 (%), we start to worry. But honestly, I don’t see inflationary pressure in the US economy now.” , even when implementing the next stimulus package, “said Mr. Yoshikami.

US Treasury bond yields have cooled down according to Asian trading hours on the afternoon of February 26. Specifically, the yield on 10-year bonds decreased to 1.4719%, while the yield on 30-year term stood at 2.2636%. However, yields on US treasury bonds fluctuate in the opposite direction of prices.

In Asia – Pacific, Australian 10-year bond yields fell to 1,834% after reaching 1.973%. Meanwhile, the yield on Japanese 10-year government bonds also dropped to 0.156%. Previously, the yield on Japanese 10-year government bonds reached 0.181% – the highest level since the beginning of 2016, according to FactSet.

Technology stocks drop sharply

Technology stocks continue to be on the radar of Asian investors on February 26 trading day. Shares of Chinese technology companies listed in Hong Kong fell sharply. In particular, Tencent shares fell 4.19%, while shares of Xiaomi, Alibaba, and Meituan slid 5.77%, 4.52%, and 8.21% respectively. The Hang Seng Tech technology index also “evaporated” 5.71% to 8,954.44 points.

Shares of SoftBank Technology Group (Japan) also plunged 4.53% on the trading day of February 26, while in South Korea, shares of Samsung Electronics fell 3.28%. Technology stocks in Asia plummeted after the tech-oriented Nasdaq Composite (US) index closed 3.52% to 13,119.43 points after the biggest sell-off since October 28, 2020. .

The Dow Jones industrial average “evaporated” 559.85 points and closed at 31,402.01 points, while the S&P 500 slipped 2.45% to 3,829.34.

In the money market, the greenback has strengthened. The US dollar index against other major currencies rose to 90,465, from below 90 levels recorded earlier this week. Japanese Yen depreciated and converted 106.04 JPY / USD, compared with below 105.6 JPY / USD at the beginning of the week, while Australian dollar also weakened to 1 AUD for 0.7836 USD.

Oil traded by Asian time slipped on the afternoon of February 26. Futures prices for Brent crude fell 1.05% to $ 66.18 / barrel, while the US crude futures price slid more than 1.2% to $ 62.77 / barrel.