Risk-off mood in Asia squeezes tech stocks

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Higher US treasury yields weigh on global tech firms and push the dollar to a five-year peak

An employee passes share price information displayed on an electronic ticker board inside the London Stock Exchange. File photo: BLOOMBERG via GETTY IMAGES/LUKE MACGREGOR

MSCI’s broadest index of Asia-Pacific shares outside Japan lost 0.8%, while Japan’s Nikkei was little changed. US stock futures slipped, with S&P 500 e-minis down 0.25% and Nasdaq e-minis losing 0.4%. He said overnight declines in the Nasdaq due to the higher yields weighed on Asian share markets given the greater significance of tech stocks in the region.

US five-year notes, which reflect rate hike expectations, soared to their highest since February 2020, after US two-year note yields hit their strongest level since March 2020 on Monday. Benchmark US 10-year treasury yields touched a six-week high on Tuesday and were last at 1.657%. He thought declines in tech stocks would be short-lived, while rising yields would help banking stocks.

 

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