Asian Stocks Fall as the Bond Market Selloff Gets Worse – Asia Market Wrap

As investors evaluated the effects of the overnight increase in Treasury yields and as bets on US rate cuts dwindled due to remarks made by a Federal Reserve speaker, stocks and bonds in Asia fell.

The MSCI Asia Pacific Index fell for a second day on Wednesday, with Hong Kong stocks leading losses in the region. Futures for US stocks fell. Australian bond sales intensified following the release of inflation data that exceeded forecasts, and benchmark rates on Japanese bonds reached their highest level since 2011.

Following two lacklustre sales of US notes, and ahead of the Fed’s preferred price gauge that is expected later this week, Treasuries steadied in Asia. The yuan fell to its lowest level since November as there were indications that authorities were allowing the currency to weaken against the strong dollar. The won of South Korea and the ringgit of Malaysia were among the emerging Asian currencies that lost value as the US dollar continued to rise.