SINGAPORE : Asia's stockmarkets wobbled lower on Wednesday as reality bit on hopes for a soft economic landing in the United States, and investors curbed their enthusiasm about China's reopening.
"Some of the optimism that had driven the rally is being put to the test," said Shane Oliver, head of investment strategy at Australia's AMP. In the United States, big banks are bracing for a worsening economy next year as inflation and rate rises threaten consumer demand, with top executives at Goldman Sachs, J.P. Morgan and Bank of America all sounding downbeat in remarks on Tuesday.
The yield on benchmark 10-year U.S. Treasuries fell 8.6 basis points to 3.513 per cent overnight and was last at 3.5442 per cent. That is more than 80 bps below the two-year yield as investors reckon on high rates hurting growth. In foreign exchange markets the dollar was seeking to steady after excitement about a slowdown in U.S. rate hikes have knocked it from the year's highs.