Asian stocks slide as rising yields batter tech, Fed chair awaited
Investing.com-- Most Asian stocks tumbled on Thursday, with technology-heavy indexes bearing heavy losses tracking a spike in bond yields, while anticipation of a speech from Federal Reserve Chair Jerome Powell also kept investors on edge.
Regional stocks took a weak lead-in from Wall Street, with heavyweight technology stocks under pressure as a rout in global bonds pushed up yields. This was exacerbated by Fed officials reiterating plans to keep interest rates higher for longer.
Concerns over an escalation in the Israel-Hamas war also kept sentiment on edge, especially after a deadly strike on a Gaza hospital. Fears that the conflict will spill over into other Middle Eastern countries had been a major weight on sentiment over the past week.
Markets were also on edge over a major default in China’s property sector, after beleaguered developer Country Garden (HK:2007) appeared to have missed a payment on its offshore bonds.
Hong Kong’s Hang Seng index severely lagged its peers, sinking 2.1%. Major Hong-Kong listed electric vehicle makers fell sharply tracking a drop in Tesla (NASDAQ:TSLA), after the electric car maker logged a weaker-than-expected third quarter.
South Korea’s KOSPI lost 1.5% on weakness in major chipmaking stocks. Market took few cues from the Bank of Korea keeping interest rates on hold.
Weakness in tech pulled Japan’s Nikkei 225 down 1.6%, although Japanese stocks were also spooked by a former Bank of Japan official saying that the bank’s negative interest rates could end as soon as this year.
Futures for India’s Nifty 50 index pointed to a weak open, likely indicating weakness in heavyweight tech stocks.
Asian tech stocks were slammed by a spike in bond yields, particularly Treasuries, as
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