Japan’s Nikkei 225 falls greater than 2% after shares collapsed on Wall Road
SINGAPORE – Asia-Pacific stocks fell in trading Wednesday after an overnight slump on Wall Street, with the Nasdaq Composite falling nearly 3% as bond yields rose.
In Japan, the Nikkei 225 lost 2.45% while the Topix index lost 2.47%. South Korea’s Kospi lost 1.87%.
Mainland Chinese stocks also posted significant losses, as the Shanghai Composite lost 1.79% and the Shenzhen stake fell 1.412%.
Hong Kong’s Hang Seng index lost 0.45% by the afternoon. However, Hong Kong-listed China Evergrande Group stocks rose 10.11% after the developer announced it would sell a $ 1.5 billion stake in Shengjing Bank to a state-owned asset management company.
The S & P / ASX 200 in Australia lost 1.2%.
MSCI’s broadest index for Asia Pacific stocks outside of Japan fell 1.23%.
Investors watched the 10-year government bond yield, which surpassed 1.5% on Monday and continued to rise, most recently at 1.5375%. The returns move inversely to the prices.
Rising yields hit tech stocks overnight on Wall Street, with the Nasdaq Composite falling 2.83% to 14,546.68 for its worst day since March. Tech stocks are hit in a rising yield environment as the rise in interest rates makes their future cash flows less valuable and, in turn, makes popular stocks appear overvalued.
Tech stocks in Asia fell in trading Wednesday, with shares in Japanese conglomerate Softbank Group down 2.33% and South Korean Samsung Electronics down 3.01%.
Chinese tech stocks in Hong Kong also fell, with Tencent down 2.72% and Alibaba down 2.52%. The Hang Seng Tech index fell 2.21%.
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On Wall Street, the S&P 500 fell 2.04% to 4,352.63 overnight while the Dow Jones Industrial Average slipped 569.38 points to 34,299.99.
Oil falls more than 1%
Oil prices were lower in the afternoon of Asian trading hours, with international benchmark Brent crude futures falling 1.48% to $ 77.92 a barrel. US crude oil futures lost 1.55% to $ 74.12 a barrel.
The US dollar index, which tracks the greenback versus a basket of its competitors, hit 93.722 after its recent surge from below 93.6.
The Japanese yen was trading at 111.49 per dollar, below the 111.2 levels seen against the greenback earlier this week. The Australian dollar was trading at $ 0.7251 after falling above $ 0.729 yesterday.