Asian Stock Market: Japan’s Nikkei 225 leads the bears as US T-bond yields slump

  • Asian shares print losses amid fears of Fed rate-hike, tapering.
  • US inflation expectations drag Treasury yields, deadlock over US infrastructure spending talks adds to the bearish moves.
  • Downbeat Aussie Retail Sales, PBOC inaction exert additional downside pressure.
  • Fedspeak becomes the key directive after hawkish FOMC, T-bond yields eyed.

Equity markets in Asia keep the red amid escalating woes over the US Federal Reserve’s (Fed) monetary policy adjustments. The same joins down Treasury yields to weigh on the market sentiment during early Monday.

That said, MSCI’s index of Asia-Pacific shares ex-Japan drops 1.3% whereas Japan’s Nikkei 225 refreshes monthly low to become the biggest loser of the region, down 3.70% by the press time of the pre-European session.

Australia’s ASX 200 comes second in the list of bears as it drops around 1.9% following the downbeat prints of preliminary Retail Sales for May. Further, stocks from Taiwan, South Korea and New Zealand were losing anywhere between 1.5% to 1.0% whereas Chinese indicates were on the same line even as the People’s Bank of China (PBOC) kept monetary policy unchanged.

Indonesia’s IDX and India’s BSE Sensex were also on the back foot, losing around 0.80% by the time of the press, amid broad fears of a halt to the easy money policies.

It’s worth noting stock futures in the west are also on the back foot whereas the US Treasury yields refresh four-month low as the 30-year T-bond yields drop below 2.0% to flatten the curve further.

Read: S&P 500 Futures refresh monthly low as US Treasury yields drop to four-month bottom

Other than the fears of the monetary policy normalization, a lack of progress over the US President Joe Biden’s infrastructure and spending plan as well as rising worries over the Delta variant of the covid also please the equity bears.

As the global markets jostle with the increased odds of the US monetary policy adjustments, further comments from the Fed policymakers become important. Hence, today’s speech from New York Fed President John C. Williams will be the key to follow for fresh impulse.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD: Teases 21-DMA support inside falling channel

EUR/USD edges lower around short-term support after five-day losing streak. EUR/USD holds lower ground near 1.1835, around the seven-day bottom, amid Friday’s initial Asian session.


GBP/USD consolidates above 1.3920 ahead of US NFP data

GBP/USD edges lower on Friday’s Asian trading session. The pair made a high near 1.3950 in the previous session but failed to holds the gains. US Dollar Index stays firm above 92.30 on upbeat economic data. The sterling remains unaffected post- BOE meeting.


EUR/USD: Teases 21-DMA support inside falling channel

EUR/USD edges lower around short-term support after five-day losing streak. EUR/USD holds lower ground near 1.1835, around the seven-day bottom, amid Friday’s initial Asian session.


Shiba Inu price continues balancing act, as SHIB nears a dramatic move

Shiba Inu price has failed to resolve the depressingly tight price action or the descending parallel channel, testing SHIB investor patience and the durability of the May 19 low support. The building contraction in price, verified by the tightening of the Bollinger Bands.

Read more

US July NFP: Analyzing major pairs' reaction to NFP surprises

NFPs in US is expected to rise by 870,000 in July. There is a strong correlation between surprising NFP prints and major pairs' immediate movements. Investors are likely to react to a disappointing NFP more strongly than a positive reading.    

Read more