Asian Stocks Fall & Treasuries End Four-Day Selloff – Asia Market Wrap
US Treasuries climbed, interrupting a four-day selloff sparked by concerns about sticky inflation, which could be worsened by President-elect Trump’s fiscal stimulus proposals.
Japanese government bonds also rose after a 30-year auction drew the highest demand since 2020. Asian markets sank for the second day in a row, and an emerging market equities index was poised for a correction as Trump’s threat of further trade tariffs unnerved investors.
Japanese and Australian equities led the regional decline, but US futures also fell. Chinese equities on the mainland and in Hong Kong moved following data indicating that deflationary pressures exacerbated in the world’s second-largest economy.
The Australian Dollar fell as weaker-than-expected retail sales data supported the argument for an interest rate drop next month.
The Yen gained to 158 per Dollar. Japanese workers’ base incomes increased the most in 32 years, providing potential support for the central bank to hike interest rates this month. Meanwhile, the country’s auction of 30-year government bonds on Thursday saw strong demand due to increased rates.
