Daily Dose, EU

JGB Yields Increase as Chinese Tech Stocks Perform Better- Asia Market Wrap

Chinese technology stocks rose ahead of earnings from sector bellwethers, while broader regional indexes declined. Japanese government bond yields rose to their highest level in over a decade.

The Hang Seng Tech Index increased by roughly 1%, boosted by increases in Tencent and Alibaba, who announce earnings later Tuesday. Investors are looking to China’s Big Tech earnings to see if a nascent stock surge can continue. A regional Asian stock index sank alongside wider indexes in China, Hong Kong, and Australia.

Japan’s 20-year government bond yield jumped to its highest level since 2013 on speculation that the Bank of Japan could lower debt-buying amounts during normal operations to relieve pressure on the ailing yen. The yen fell against the dollar for the third straight day, reaching a two-week low.

With the latest Chinese economic statistics indicating a patchy rebound, any earnings shortfall might dampen the market’s enthusiasm. Hong Kong markets are closed for a holiday on Wednesday, so the Nasdaq Golden Dragon China Index will be the first to respond to the results.