Asian stocks slump to 11-mth lows as higher-for-longer rate fears persist

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Ecology Action Centre calls for immediate implementation of Coastal Protection Act | SaltWireHONG KONG - Asian stocks slid to 11-month lows on Wednesday, U.S. futures dropped and the dollar surged as Treasury yields spiked back toward peaks on fears that U.S. interest rates will stay high.

The benchmark 10-year Treasury yield, a bedrock for pricing risk-taking across financial markets, jumped 11 basis points overnight and traded at 4.96% on Thursday. "Once you have more stable treasury environment, you will have a clearer earnings revision story," he added, noting markets dominated by tech firms, which rely heavily on financing, will be vulnerable to higher rates due to borrowing costs.

The S&P/ASX 200 index retreated 0.7% to 6,854.20 in early trade, hitting its lowest level since Oct. 31, 2022.The yen weakened past 150 per dollar, a level that has put traders on guard for intervention to support the Japanese currency. By 0300 GMT the yen was trading at a one-year low of 150.43 per dollar.

 

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