Asian Shares Mixed Amid Rising Bond Yields

Asian stocks turned in a mixed performance on Thursday, the dollar strengthened, and bond yields hit fresh multi-month highs, as signs of rising inflationary pressures in the U.S. and hawkish comments from Federal Reserve officials cemented investor worries over further interest-rate hikes.

Chinese shares fluctuated before finishing marginally lower, reversing Wednesday’s gains. The Shanghai Composite Index edged down 0.1 percent to 3,310.65.

Hong Kong’s Hang Seng Index fell 0.9 percent to 20,429.46 after rallying more than 4 percent the previous day to register its biggest single-day gain in nearly three months following unexpectedly upbeat readings from China’s PMI surveys.

Japanese shares gave up early gains to finish slightly lower despite a weaker yen and fading expectations of an imminent hawkish turn by the Bank of Japan.

The Nikkei 225 Index ended marginally lower at 27,498.87, while the broader Topix closed 0.2 percent lower at 1,994.57.

Tech stocks led losses, with Advantest, Screen Holdings and Tokyo Electron falling between 1 percent and 1.6 percent. Among those that gained, Uniqlo store operator Fast Retailing jumped 2.1 percent.

Seoul stocks gained ground on optimism surrounding China’s economic recovery from the COVID-driven slowdown.

The Kospi climbed 0.6 percent to 2,427.85, led by steelmakers and oil refiners. POSCO Holdings jumped 6 percent and SK Innovation added 6.9 percent.

Australian markets ended on a flat note as yields on government bonds rose across the 2-year to 10-year maturities. The benchmark S&P/ASX 200 Index and the broader All Ordinaries Index both closed marginally higher at 7,255.40 and 7,460, respectively.

Miners topped the gainers list, with BHP, Rio Tinto and Fortescue Metals Group all surging more than 4 percent.

Across the Tasman, New Zealand’s benchmark S&P/NZX-50 Index rose 0.2 percent to 11,900.86.

U.S. stocks fluctuated before closing mostly lower overnight and the yield on the 10-year note reached 4 percent for the first time since November, as data showed U.S. manufacturing contracted for a fourth straight month in February and the prices-paid measure hit its highest level since September.

Home improvement retailer Lowe ‘s issued weak FY23 revenue guidance, adding to the downbeat sentiment. The tech-heavy Nasdaq Composite gave up 0.7 percent and the S&P 500 dipped half a percent, while the Dow finished marginally higher.

Source: Read Full Article