Asian stocks slip on recession fears, rising yields

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MSCI’s broadest index of Asia-Pacific shares outside Japan fell to more than two-year lows, while the Nikkei opened 1% lower

Singapore — Asian share markets fell on Thursday as investor fears over a looming recession crimped risk appetite, while treasury yields rose on expectations that the Federal Reserve will remain aggressive in its interest-rate hikes.

“Yields rose to fresh cycle highs and risk appetite soured,” said Taylor Nugent, a markets economist at National Australia Bank in Sydney, adding that hawkish commentary from central banks also weighed on sentiment. Australia’s S&P/ASX 200 index was 1.12% lower, while Japan’s Nikkei opened 1% lower at 26,981.75 on Thursday.

In the currency markets, the US dollar firmed as investors flocked to the safe haven after inflation data across the world raised the prospect of central banks continuing with interest-rate hikes. Still, the Fed’s Beige Book survey of economic activity showed that there was some easing in several districts, but firms noted price pressures remained elevated.

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