SYDNEY/NEW YORK: Asian stocks were lower on Tuesday as rising bond yields impacted tech shares and company valuations in China and Korea and investors grappled with their inflation fears as the United States looks set to pass a US$1.9 trillion stimulus package.
"The chance of our seeing more inflation in the economy is meaningfully increased by the monetary policy actions and the fiscal policy actions that we're seeing around the world," Goldman Sachs Chief Executive Officer David Solomon told a conference in Sydney via webcast. The index gave back those gains to be only 0.40per cent higher in afternoon trading following the tech declines and a 10per cent fall in Insurance Australia Group shares ahead of an announcement regarding the insolvency of financial services provider Greensill Capital.Advertisement
The pan-European STOXX 600 index .STOXX rose 2.10per cent and MSCI's gauge of stocks across the globe shed 0.02per cent.