Asian stock markets are under pressure from rising bond yields…

Bloomberg— Asian stocks fell as Treasury yields rose after the latest US inflation data.Which boosted bets on an interest rate hike by the Federal Reserve. New Zealand and Australian bonds joined the selling in early trading on Friday.

Benchmark indices fell in Japan and South Korea, as well as Australia. Hong Kong stock futures pointed to a lower open, while US contracts were little changed after the S&P 500 index fell for the first time in five days, with banks outperforming earlier results from JPMorgan Chase & Co., Citigroup and Wells Fargo. &Co. Friday.

Treasuries steadied in early trading hours in Asia after falling across the curve in the previous session, with the yield on 30-year Treasuries rising as much as 19 basis points after a $20 billion auction of the securities attracted weak demand.

The dollar also stabilized after rising against all of its G10 peers on Thursday, following a rise in Treasury yields. The yen approached 150 points.

For its part, the Monetary Authority of Singapore kept its monetary policy unchanged, in line with economists’ expectations. In Asia, Chinese inflation and trade data will be published. According to Bloomberg Intelligence, consumer price inflation in China is likely to remain near zero in September, while producer prices continue to decline. Trade data for September is likely to show that the decline in exports has eased.

The swaps raised the odds of a further quarter-point Fed hike to about 40%, from about 30% on Wednesday, after the so-called core consumer price index, which excludes food and energy costs, rose 0.3% in the United States. Last month. Compared with a year ago, it rose 4.1%, the lowest level since 2021. Economists favor the core measure as a better indicator of core inflation than the headline CPI, which rose 0.4%, driven by energy costs. Expectations indicated a monthly progress of 0.3% in both indicators.

Nadia Lovell, chief equity strategist at UBS Global Wealth Management, told Bloomberg TV that the Fed will want to be flexible about raising interest rates again, “taking into account the fact that inflation could stagnate at a higher, higher level.” “It is much easier to be bold in an environment where economic growth is strong and then reduce it if necessary, than to be pessimistic in case inflation surprises to the upside.”

On the other hand, the price of oil rose in Asian trading after a decline on Thursday, due to the increase in crude oil reserves in the United States, which mitigates geopolitical risks in Israel and Gaza. Gold settled.

Some of the main movements in the markets:

procedures

• S&P 500 futures were little changed at 9:22 Tokyo time. The Standard & Poor’s 500 index fell 0.6%.
• Nasdaq 100 futures rose 0.1%. The Nasdaq 100 index fell 0.4%.
• The Japanese Topix index fell 0.7%.
• Australia’s S&P/ASX 200 index fell 0.5%.
• Euro Stoxx 50 futures fell 0.2%.

Currency exchange rate

• The Bloomberg Dollar Spot Index was little changed
• The euro was trading at $1.0538.
• The Japanese yen was trading at 149.77 per dollar.
• The yuan was trading at 7.3084 to the dollar.
• The Australian dollar was trading at $0.6319.

Digital currencies

• Bitcoin rose 0.4% and reached $26,834.08.
• Ethereum rose 0.5% to $1,543.43.

Rewards

• The yield on the 10-year Treasury note fell one basis point to 4.68%.
• The yield on 10-year Japanese bonds rose by 2.5 basis points to 0.775%.
• The yield on Australian 10-year bonds rose nine basis points to 4.46%.

raw materials

• West Texas Intermediate crude rose 0.8% to $83.54 a barrel.
• Gold rose in spot transactions 0.1 percent to $1,871.67 per ounce.

This article was produced with the help of Bloomberg Automation.

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