Asian Market Mostly Slipped As Rising Treasury Yields Pressure Stocks

In today’s trading session, most Asian stocks declined due to ongoing concerns about the outlook for US interest rates, while oil prices continued to rise following an attack on a ship in the Red Sea, sparking new worries about Middle East supply disruptions.

 As crucial US inflation data is set to be released at the end of the week, investors are mostly adopting a wait-and-see approach, with many inclined to sell following a recent market rally. 

Asian investors were on edge in today’s trading, leading to market declines across the region, with Hong Kong experiencing the steepest losses due to significant sell-offs in Chinese tech firms. 

The Hang Seng index dropped by 1.8% to 18,477.01, while the Shanghai Composite remained nearly unchanged, rising by less than 0.1% to 3,111.02. The International Monetary Fund increased its growth forecast for China’s economy, predicting a 5% annual growth rate for this year. However, it also emphasized the necessity of consumer-friendly reforms to maintain robust, high-quality growth. 

Investors are also evaluating China’s recent initiatives to support the property market and their potential effects on home sales and economic growth. Yesterday, Guangzhou and Shenzhen followed Shanghai in loosening restrictions on home purchases, joining nationwide efforts to rescue struggling industries. Over the past four months, a Bloomberg index of Chinese property stocks traded in Hong Kong has jumped 35%.

Japan’s Nikkei 225 index also fell by 0.87% to 38,533.42. Australia’s S&P/ASX 200 fell 1.3% to 7,665.60. South Korea’s Kospi decreased by 1.6% to 2,679.75.