Asian stocks mixed as treasury yields stabilise from seven-year peak

Asian stocks traded mixed on Wednesday, as yields on Treasuries retreated from a seven-year peak. The dollar edged lower against major currencies.

Shares in Japan rose after four days of losses, while those in China reversed gains. Hong Kong stocks outperformed their South Korean counterparts, lagging after a holiday.

Earlier, the S&P500 Index was dragged down by materials shares, after a profit warning in the sector, while technology shares rebounded from a three-day rout. Treasuries steadied with the yield on the 10-year benchmark little changed at 3.21 per cent, while the greenback remained under pressure after US President Donald Trump said the Federal Reserve is moving too fast with interest-rate hikes.

Asian investors are assessing increasingly attractive valuations against a backdrop of deepening US-China tensions and a surge in volatility for stock and bond markets.

Global trade war concerns hurt most S-E Asian stocks; Singapore rises

The Philippines stocks fell on Tuesday on the peso’s continued slide coupled with renewed trade war concerns, while Singapore extended gains for a fifth session thanks to “window dressing” attempts by portfolio managers ahead of the third quarter close. Broader Asian stocks struggled as the latest round of US-China tariffs revived fears the trade dispute would knock global growth, with neither side looking to be in a mood to compromise.

MSCI’s broadest index of APAC shares outside Japan edged down 0.3 per cent.

“The failure of China and the US to come to terms on the negotiation table ... is creating weakness in major economies in Asia, and has resulted in most Southeast Asian equities to retreat from what they gained last week,” said Manny Cruz, a Manila-based analyst at Asiasec Equities Inc.

Filippino stocks fell the most in the region, down about 0.7 per cent after two days of gains, with financials and real-estate stocks weighing on the index.

Business Standard