Yields on US bonds

US bond yields “dancing” again, Nikkei 225 and Hang Seng both slipped deeply

The major stock indexes of the Asia-Pacific region all slipped more than 2% in the morning session of March 4 when US Treasury bond yields rose again.

Hong Kong’s Hang Seng Index lost 2.32% in the morning session of March 4. Photo: AFP

Both major stock indexes of Japan fell this morning. The Nikkei 225 to lose 2.19%, while the Topix index fell 1.23%. On the Korean market, the Kospi index also suffered a 1.16% decrease.

Hong Kong stocks were also in the red this morning, with the Hang Seng Index slipping 2.32%. Mainland China also saw a fiery session with the Shanghai Composite Index dropping 1.65% and the Shenzhen Component Index slipping more than 3%.

The Australian stock market this morning flooded in red when the S & P / ASX 200 index fell 0.84%, although the Australian Bureau of Statistics announced that the country’s retail sales in January inched up 0.5% compared to the previous year. month earlier. This increase is still lower than the 0.6% expectation that was noted by economic experts with Reuters news agency recently.

However, also in January, Australia reached a trade surplus of 10,142 billion Australian dollars (equivalent to about 7.88 billion USD), exceeding the forecast of 6.5 billion Australian dollars by analysts.

Overall, the MSCI Asia-Pacific (excluding Japan) this morning fell 1.79%. Analysts explain major stock markets in the region in red by the yield of 10-year US Treasury bonds bounced back, reaching 1.4774% in the latest update. At the same time, the increase in yield moved inversely with the price of the bond.

Last week, US Treasury yields peaked at 1.6%, a development that made insiders say this was a “flash” shock and aroused concerns about a sharp fall in stock prices and risk. inflation increased.

Following the US market, bond yields in the Asia-Pacific region have risen together. Australia’s 10-year bond yield hit 1,782% while Japanese 10-year government bond yield also increased to 0.135%.

Investors are closely following technology stock movements in Asia after stocks of US technology corporations last night fell when US Treasury yields rose. Specifically, shares of SoftBank Technology Group (Japan) this morning plunged 5.33%. In South Korea, Samsung Electronics slipped 1.55 percent, while shares of the world’s second-largest chipmaker SK Hynix fell 3.74 percent.

Meanwhile, shares of Chinese technology companies listed in Hong Kong could not avoid a heavy loss session. Significantly, Tencent shares fell 3.8%, while shares of food delivery empire Meituan “evaporated” to 7.57%, while Alibaba shares slipped 2.07%. In Taiwan, shares of the world’s leading semiconductor maker (TSMC) fell 2.73%.

Previously, the technology-oriented index Nasdaq Composite (US) last night closed down 2.7% to 12,997.75 points when the “heavyweights” of Apple, Amazon, Microsoft, and Alphabet all fell more than 2. %.

The other major indexes on Wall Street last night were also “on fire”. The S&P 500 fell 1.31% to 3,819.72 points while the Dow Jones industrial average lost 121.43 points to 31,270.09.

On the money market, the greenback inched up this morning, with the US dollar index against other major currencies returning to 91,016, after falling to 90,988. Japanese yen continued to slide and traded at 107.03 JPY / USD, compared with less than 106.8 JPY for 1 USD at the beginning of the week, while the Australian dollar also weakened and exchanged 1 AUD for 0.7796 USD, from 1 AUD to more than 0.792 USD in the previous week.

Oil prices traded by Asian hours this morning increased after information about the Organization of the Petroleum Exporting Countries (OPEC) and its partners about to meet online to discuss solutions for the oil market. Brent crude oil futures prices rose 0.76% to $ 64.56 / barrel while the US crude futures prices also increased by 0.65% respectively and traded at $ 61.68 / barrel.

The Organization of the Petroleum Exporting Countries (OPEC) and partners outside OPEC – an energy union (called OPEC +) – are scheduled to meet online today March 4 to discuss regulatory measures. distributing oil supply to the market.