Asian stocks reach three-week highs

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Cash running from tumbling bond markets is flowing back towards big tech and other sectors

A man wearing a protective mask during the Covid-19 pandemic walks past an electronic board displaying graphs of the Nikkei index outside a brokerage in Tokyo, Japan. Picture: REUTERS/KIM KYUNG-HOONAsian equities hit three-week highs on Wednesday as cash fleeing tumbling bond markets flowed back towards big tech and other beaten-up sectors, while the Ukraine conflict’s potential to further hit supply kept oil and commodity prices high.

Bond markets extended their retreat as investors braced for the Federal Reserve to take an even more aggressive approach to taming inflation. Two-year treasury yields are up 76 basis points in March and 10-year yields are up almost 60 BPS to 2.4154%, the highest since 2019. “At some point the market might start pricing in an economic downturn, particularly if the Fed embarks on a series of 50 BPS hikes.”

Tech behemoths Tencent and Alibaba and food-delivery giant Meituan led the Hang Seng tech index up by more than 3%.

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