Bonds in Focus, Stocks Continue to Fall Before Nvidia – Asia Market Wrap
Global shares were poised for their worst losing run in more than two months as rising inflation concerns pushed bond rates higher, putting pressure on stocks and encouraging investors to reconsider valuations following a record-breaking rally.
MSCI’s All Country World Index down 0.2%, marking the fourth consecutive day of falls, while the firm’s Asia Pacific gauge fell 1.2%. South Korea’s Kospi, a crucial indicator for AI-related investments, plummeted nearly 2%, with Samsung falling after its labour union announced a walkout. Futures showed that the losses will spread to Europe and the US.
Brent crude remained at $110 per barrel, with no signs of easing in the Iran crisis. This has raised inflation concerns, pushing on government bonds around the world. Yields on 30-year Treasuries soared to levels not seen since 2007, amid concerns that rising energy costs may compel the Fed to raise interest rates rather than lower them.
Global markets have dropped from all-time highs, after investors spent weeks dismissing fears over the Middle East conflict in favour of confidence that AI spending will continue to drive corporate earnings growth. The focus has shifted to Nvidia’s earnings on Wednesday, with investors increasingly questioning if the AI-driven rise has gone too far, too fast.
In Asia, Chinese President Xi welcomed Russian President Putin to Beijing on Wednesday for discussions aimed at strengthening bilateral ties and moving forward on a long-stalled energy project. Singapore also surpassed Indonesia as Southeast Asia’s largest stock market.
