Business Maverick: Asian stocks tumble on heightened rate-hike fears: markets wrap

  • 📰 dailymaverick
  • ⏱ Reading Time:
  • 29 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 15%
  • Publisher: 84%

Business News News

Business Business Latest News,Business Business Headlines

A gauge of Asian equities dropped more than 1% on Wednesday, led by heavy declines in technology stocks, after hawkish rhetoric from Federal Reserve chair Jerome Powell hurt appetite for risk taking.

Hong Kong-listed Chinese technology companies fell more than 3%, with notable weakness also in South Korean and Australian shares. US futures fluctuated after a sharp slide on Wall Street on Tuesday, when the S&P 500 dropped the most in two weeks.

The two-year Treasury yield rose further above 5% on Wednesday and was at the highest level since mid 2007. The rate has now surpassed its 10-year equivalent by a full percentage point for the first time since 1981. This is playing out in a deeply inverted yield curve – a potential harbinger of recession.

“A 6% terminal rate is not out of the question now,” said Kellie Wood, deputy head of fixed income at Schroders in Australia. “Expect to see a broad-based selloff in Aussie and Asian markets today led by the short end but with US rates underperforming.”

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 3. in BUSİNESS

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Asian stocks firm as bonds pause on update over US rate outlookThere was disappointment that Beijing set its growth outlook at 5%, but the recent run of data has kept investors optimistic
Source: BDliveSA - 🏆 12. / 63 Read more »