In early Friday trade, Australian stocks shed 1 per cent, Japan’s Nikkei share average lost 0.7 per cent, shares in Seoul fell 0.24 per cent and E-Mini S&P futures were a touch lower at 0.04 per cent. — Reuters picNEW YORK, March 5 — Asian stocks skidded today as rising US Treasury yields again rattled equity investors while hoisting the dollar to a three-month high, which in turn dragged the Japanese yen to an eight-month trough.
US stocks had dropped sharply yesterday after Federal Reserve Chair Jerome Powell disappointed some investors by not indicating that the Fed might step up purchases of long-term bonds to hold down longer-term interest rates. “The US dollar has gained 0.8 per cent, and there you see the holy trinity of market fears — rising real rates, increased expectations of rate hikes, and a stronger US dollar,” said Chris Weston, the head of Research at Pepperstone Markets Ltd, a foreign exchange broker, in Australia.
Rising Treasury yields bolstered demand for the dollar. The dollar index jumped 0.61 per cent against a basket of major currencies to 91.651, within sight of a three-month high of 91.663.
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