HONG KONG, March 7: Asian stocks closed sharply lower on Tuesday after the prospect of higher interest rates in the US, which would force regional central banks to follow suit, returned to haunt investors.
Stocks were struck by a sharp drop in the US bond market where yields on 10-year Treasury notes reached their highest levels since June 2004, just before the Federal Reserve began raising interest rates.
This sent shutters through Asian markets. Even Shanghai, a market that often ignores external factors, reacted and suffered the biggest drop of the day with a 2.2 per cent fall.
The tumble was aided by a possible end to Japan’s super-loose monetary which coupled with bond yields punished Tokyo by 1.10 per cent, and this further fueled selling elsewhere.
TOKYO: Share prices lost 1.10 per cent as investors opted to take profits ahead of a decision by the central bank this week on whether to end its ultra-loose monetary policy.
The Nikkei-225 index fell 175.14 points to 15,726.02. on turnover of 1.64 billion shares.
SMBC Friend Securities senior strategist Toshihiko Matsuno said market players opted to pocket profits after the benchmark Nikkei 225 index added 1.5 per cent Monday, and because of a pullback on Wall Street.
HONG KONG: Share prices closed 1.32 per cent lower as property stocks were hit by renewed worries over the outlook for interest rates after US government bond yields rose to multi-year highs overnight.
SYDNEY: Share prices closed 0.49 per cent lower on fears that US interest rates could rise and following an overnight drop in metal and oil prices which hit the resources sector.
The S and P/ASX 200 index dropped sharply at the opening but recovered to close down 24.2 points at 4,879.7. Turnover was 1.32 billion shares worth 3.54 billion dollars (2.62 billion US).
SINGAPORE: Share prices closed 0.94 per cent lower in line with losses in regional markets sparked by concerns over Wall Street’s downturn and the outlook for higher interest rates.
KUALA LUMPUR: Share prices closed flat in listless trade with continued concerns about rising inflation dampening interest.
The composite index was up 0.29 points at 915.21 and volume was 531.32 million shares worth 879.71 million ringgit ($238 m).
JAKARTA: Share prices closed 1.30 per cent lower amid profit-taking a day after the index hit a fresh record, with falls on regional markets weighing on sentiment.
WELLINGTON: Share prices closed 1.09 per cent higher, led by exporters after the local currency slumped to an 18-month low against the US dollar.
The NZSX-50 gross index rose 37.78 points to 3,458.68 on turnover worth 144.3 million New Zealand dollars (94.3 million US).
The New Zealand dollar slumped to 65.35 US cents by the close in local trading, down from 66.63 on Monday, due to perceptions New Zealand’s yield advantage will soon diminish local interest rates are cut.—AFP