News: Asia stocks set to fall, pressured by soaring T-note yields.
NEW YORK (Reuters) – Asian stocks will mostly open lower on Friday. This is put under pressure by US Treasury bond yields, which rose to 14-month highs overnight, and oil prices, which fell from their largest one-day declines since last summer.
The Australian S & P / ASX 200 Index lost 0.21% in early trading and the Hang Seng Index Futures in Hong Kong lost 0.72%.
In Japan, where the central bank will meet on Friday, the Nikkei 225 futures were up 0.08%. The e-mini futures for the S&P 500 rose 0.21%.
The yield on the 10-year US Treasury bill surged above 1.75% Thursday for the first time in 14 months after the Federal Reserve pledged to look beyond inflation and keep interest rates near 0% until at least 2024, and then after the release was lower from mixed economic data.
The jump in returns accelerated growth stocks churn, with the tech-heavy Nasdaq falling more than 3%. [.N]
The benchmark index S&P 500 fell from record highs, while MSCI’s global equity index fell 0.71%.
Oil prices fell and fell for the fifth consecutive year on growing concerns over rising COVID-19 cases in Europe as several major economies re-imposed lockdowns.
France’s prime minister imposed a month-long lockdown on Paris and parts of the north after a stalled vaccine rollout and the spread of highly contagious variants of coronavirus forced President Emmanuel Macron to change course.
A dollar rally, aided by higher US bond yields, also weighed on oil prices as a stronger dollar makes oil more expensive for holders of other currencies.
The Brent crude oil futures declined $ 4.72, or 6.9%, to $ 63.28 per barrel, while the U.S. crude oil futures declined $ 4.60, or 7.1%, to $ 60 a barrel.
On Wall Street, the Dow Jones Industrial Average fell 153.07 points, or 0.46%, to 32,862.3, the S&P 500 fell 58.66 points, or 1.48%, to 3,915.46, and the Nasdaq Composite fell 409.03 points or 3.02% to 13,116.17.
The pan-European STOXX 600 index rose 0.40%.
Benchmark 10-Year Notes US10YT = RR last fell 21/32, returning 1.7135%, down from 1.641% late Wednesday.
The US dollar rebounded across the board as higher government bond yields helped offset losses from the previous session.
The dollar index rose 0.482% and the euro 0.02% to $ 1.1917.
The Australian dollar was up 0.08% against the greenback at $ 0.776.
Reporting by Elizabeth Dilts Marshall in New York; Adaptation by Matthew Lewis
Original Source © Reuters