Stock market today: Asian shares are sharply lower, tracking a rates-driven tumble on Wall Street

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Asian markets are trading sharply lower after Wall Street tumbled as it focused on the...

A currency trader watches monitors at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Wednesday, Oct. 4, 2023. Asian markets were sharply lower on Wednesday after Wall Street tumbled as it focused on the downside of a surprisingly strong job market: the likelihood that interest rates will stay high.A currency trader watches monitors near the screens showing the Korea Composite Stock Price Index , left, and the foreign exchange rate between U.S.

Stocks fell after a report showed U.S. employers have many more job openings than expected. Expectations that interest rates will stay high are pressuring stocks as Treasury yields rise in the bond market. The 10-year Treasury yield climbed Tuesday to 4.79% from 4.69% late Monday and from just 0.50% early in the pandemic. It touched its highest level since 2007.When bonds are paying so much more in interest, they pull investment dollars away from stocks and other investments prone to bigger price swings than bonds. High yields also make borrowing more expensive for companies and households across the economy, which can hurt corporate profits.

Fed Gov. Michelle Bowman said in a speech Monday that she expects it will likely be appropriate “to raise rates further and hold them at a restrictive level for some time.”

 

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