© Reuters. Men with umbrellas walk near an electrical panel displaying the Nikkei index at a brokerage in Tokyo
By Echo Wang MIAMI (Reuters) – Asian equities fell on Tuesday as rising U.S. Treasury yields and inflation outlook led to higher turnover of big tech companies responsible for a major Wall rally. Street during the pandemic. The Australian fell 0.11% and the Kospi from South Korea fell 0.87% in early trading. Hong Kong futures were up 0.54%. Japanese markets are closed on Tuesdays for public holidays. Oil prices rose on a tight global supply outlook after US production was hit by frigid weather and an upcoming meeting of major crude producers is expected to keep production under control. Bond yields have risen sharply this month as prospects for increased fiscal stimulus in the US fueled hopes for a faster economic recovery globally. However, that is also fueling inflation expectations, prompting investors to sell the growth stocks that fueled the rally in stocks during the pandemic. “The bond sell-off is like a slow-motion car accident for equity investors,” said Michael McCarthy, chief market strategist at brokerage CMC Markets in Sydney. “A higher interest rate environment forces investors to consider the opportunity costs of investments. Stocks that have significant indebtedness, or that do not produce income for investors, can be particularly vulnerable.” On Wall Street, he was up 0.09%, making a small profit. He lost 0.77% and fell 2.46%. High-growth stocks, including Apple Inc (NASDAQ :), Microsoft Corp (NASDAQ :), Tesla (NASDAQ 🙂 Inc and Amazon.com (NASDAQ :), fell on the Nasdaq and weighed on the S&P 500. The Australian dollar traded near breakeven against the dollar at $ 0.791 after hitting a new three-year high. Commodity prices rose in part as the US dollar continued its widespread weakness. added 0.06% to $ 1,809.69 an ounce. The MSCI World All Country Index, which tracks stock market performance in 45 countries, gained 0.04%. Federal Reserve Chairman Jerome Powell delivers his semi-annual testimony to Congress starting Tuesday and is likely to reiterate a commitment to keeping the policy very easy for as long as it takes to boost inflation. US economic growth, measured by gross domestic product, is expected to be more vigorous than at any other time in the past 35 years and business investment is expected to develop twice as fast as the overall economy, according to Credit Suisse (SIX :). MSCI’s broader index of Asia-Pacific stocks outside of Japan fell 1.18% on Monday, after falling from an all-time high last week when the jump in US bond yields unsettled investors. It fell 0.287%, with the euro rising 0.09% to $ 1.2165. The Japanese yen strengthened 0.06% against the dollar at 104.99 per dollar.
