Asian Stock Market: Bears in command as China stocks see the red, Fed concerns propel yields

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Asian Stock Market: Bears in command as China stocks see the red, Fed concerns propel yields – by anilpanchal7 Asia RiskAppetite Equities China Fed

d in the US Treasury bond yields and weigh on equities. While portraying the mood, the MSCI’s index of Asia-Pacific shares ex-Japan slumps 2.0%. However, Japan’sIt should be noted that stocks in China are the most negative, followed by those from Hong Kong.

Elsewhere, stocks in Australia and New Zealand also portray mild losses while tracking China whereas Indian equities bear the burden of the Adani stock rout. Furthermore, Indonesia’s IDX Composite drops 0.70% despite firmer Gross Domestic Product figures for the fourth quarter . On a broader front, S&P 500 Futures extend the previous day’s pullback from the highest levels since August, down 0.30% intraday near 4,140 by the press time. On the same line, the US 10-year Treasury bond yields remain firmer for the third consecutive day, to 3.56% by the press time, following the biggest weekly jump since late September 2022.

Also to note is that Friday’s upbeat US jobs report and activity numbers renewed hawkish bias towards the Federal Reserve and underpinned the recovery in the US Treasury bond yields, which in turn weighed on the market’s mood. Also likely to probe the sentiment could be the cautious mood ahead of Fed Chairman Jerome Powell’s speech on Tuesday, as well as the market’s chatters that China's stimulus will be limited.

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