Asian stock market continues to sell global stocks as Treasury yields rise, according to Investing.com

Author: Gina Lee

Investing.com – Asia Pacific shares were down mostly on Wednesday morning, and U.S. Treasury yields helped keep up with the rise in global sales. Investors also continue to consider tightening the US Federal Reserve’s tightening monetary policy to reduce inflation.

Japan fell 1.89% at 21:01 (2:01 GMT) and South Korea 0.11%.

In Australia, it fell by 0.51%. it showed a 2% contraction in January compared to a 1% contraction in the previous month.

It grew by 0.05% in Hong Kong. China fell 0.15% to 0.07%.

Global equities have had a volatile start to 2022, with a hawkish Fed, including the economic impact of the omicron COVID-19 variant and rising inflation. Higher bond yields also force investors to re-evaluate valuations on a wide range of assets.

“Overall, we expect the bond market to drive volatility on a broader basis, including in the stock markets and other markets,” Winnie Cisar’s Global CreditSights chief strategy officer told Bloomberg.

In the last quarter and the first half of 2022, there was also some concern about corporate profits, which could have lost high expectations.

In the US, data for Tuesday showed that it fell to 0.70 in January. Housing data, including, will arrive later.

The question that investors are most struggling with is whether the US Federal Reserve should tighten its monetary policy to target lower inflation, or whether slowing economic growth will allow it to be less aggressive about hardening the central bank, 22V Research founder Dennis DeBusschere told Bloomberg . .

The first would be “tremendous” for cyclical and technological actions, he added.

In front of the company, Goldman Sachs Group Inc.’s (NYSE 🙂 trading revenues were worse than expected in the fourth quarter of 2021, affecting banks. Alibaba (NYSE 🙂 Group Holding Ltd. (HK 🙂 US shares fell as the U.S. is reviewing its cloud business to assess national security risk.

Including companies Morgan Stanley (NYSE :), Bank of America Corp. (NYSE :), UnitedHealth Group Incorporated (NYSE 🙂 and Netflix Inc. (NASDAQ 🙂 They will post the profits during the week.