Asian Stocks Mixed as Treasury Yields Stabilize: Markets Wrap

Bloomberg.com — Asian stocks traded mixed Wednesday as yields on Treasuries retreated from a seven-year peak. The dollar edged lower against major peers.

Shares in Japan rose after four days of losses while those in China reversed gains. Hong Kong stocks outperformed with their South Korean counterparts lagging after a holiday. Earlier, the S&P 500 Index was dragged down by materials shares, after a profit warning in the sector, while technology shares rebounded from a three-day rout. Treasuries steadied with the yield on the 10-year benchmark little changed at 3.21 percent, while the greenback remained under pressure after President Donald Trump said the Federal Reserve is moving too fast with interest-rate hikes.

Asian investors are assessing increasingly attractive valuations against a backdrop of deepening U.S.-China tensions and a surge in volatility for stock and bond markets. Bear markets for equities in China and Hong Kong contrast with American equities that remain near to all-time highs. China’s yuan remains weak after steps this week from authorities to spur lending in the economy. New lending and money-supply data, due as soon as Wednesday, will be closely watched as Beijing strives to support flagging growth.

Elsewhere, American crude held near $75 a barrel as Hurricane Michael curtailed offshore oil production and the IEA issued a warning to the global market. The pound nudged up as the Times reported a group of between 30 and 40 Labour members of parliament will defy Jeremy Corbyn and endorse a less hard-line proposal to prevent a no-deal Brexit.