Asian stocks skidded to one-month lows on Friday as rising U.S. Treasury yields again rattled equity investors while hoisting the dollar to a three-month high, which in turn dragged the Japanese yen.
That sent MSCI's broadest index of Asia-Pacific shares outside of Japan to 684.52, the lowest since Feb. 1.U.S. stocks dropped on Thursday 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 tech-heavy Nasdaq Composite tumbled 2.1per cent, taking it down about 10per cent from its record close on Feb. 12 and putting it in correction territory.
"Volatility seen in local interest rate markets yesterday with another large increase in long-term rates and government bond yields has set the scene for a choppy market again today if overnight developments are any guide."Bond investors with a bearish view of Treasuries took heart in Powell's remarks and sold the notes. The yield on 10-year Treasuries climbed above 1.5per cent to as high as 1.5727per cent, but still below a one-year high of 1.614per cent struck last week.
Singapore Latest News, Singapore Headlines
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