Asian stocks open lower on inflation fears

Asian stocks open lower on inflation fears

News: Asian stocks open lower on inflation fears.

MIAMI (Reuters) – Asian stocks opened lower on Wednesday on concerns about rising interest rates and high stock valuations, as well as a downtrend in US and European overnight trading.

The Dow and S&P 500 made up for early losses after Federal Reserve Chairman Jerome Powell reaffirmed before the Senate Banking Committee that monetary policy would remain accommodative and would not change without warning.

The tech-heavy Nasdaq index closed 0.5% as investors did the big ones Tech-Sold stocks that had fueled the market rally since last March and turned into cyclical stocks to boost the Dow and S&P 500.

But Powell’s statement did not completely dispel fears of rising inflation, as economies around the world are expected to recover more than expected this year, just weeks later when vaccines are rolled out around the world.

“Despite reassuring words from Mr Powell, the markets know that the Fed will have difficulty maintaining support for economies and markets when US inflation is above 2%,” said Michael McCarthy, chief markets strategist for CMC Markets in Sydney.

In early Asia trading, the Australian S & P / ASX 200 fell 0.5%, the South Korean KOSPI fell 0.4% and the Japanese Nikkei 225 fell 0.9%. Hong Kong’s Hang Seng Index Futures fell 0.37%.

USTechStocks fell as investors sold recent winners to convert them into assets that are expected to do well in an improving economy. The tech-heavy Nasdaq fell 0.5%, while in Europe the TechShares posted their worst two-day decline in four months, at 3.7%.

Tesla Inc lost 2.2% to close in negative territory for the year and fell on the TechSell-off and falling Bitcoin, which lost 12%. Tesla recently invested $ 1.5 billion in the cryptocurrency.

The Dow Jones Industrial Average rose 15.66 points or 0.05% to 31,537.35, and the S&P 500 rose 4.87 points or 0.13% to 3,881.37.

Spot gold rose 0.1% to $ 1,806.25 an ounce.

The dollar index fell 0.037% and the euro 0.04% to $ 1.2154.

U.S. crude fell 3 cents to $ 61.67 a barrel on Tuesday, still near its highest level since January 2020. Brent crude rose 13 cents, or 0.2%, to $ 65.37 a barrel.

The 10-year US Treasury bill fell 1.4 basis points to 1.3551% in late US trade. It peaked at 1.389% early Tuesday before Powell testified.

The two-year US Treasury yield, which is typically in line with interest rate expectations, has barely changed at 0.1169%.

Reporting from Echo Wang in Miami; Adaptation by Lincoln Feast.

Original Source © Reuters

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