Japanese Nikkei 225 Index has been registering a decline of about 2% and oil prices registered a fall of 1%
Tech stocks have been hit hardly amid increasing yields as the increasing rates are making their future cash flows to be less valuable, and in turn making the popular tech stocks to be overvalued
The stocks in the Asia-Pacific stocks have been witnessing a fall in morning trade which is followed by an overnight decline on Wall Street, with the Nasdaq Composite reducing about 3% as bond yields increase. In Japan, the Nikkei 225 index plummeted 2.41% whereas the Topix index registered a drop of about 2.5%. The South Korean Kospi Index reduced 1.85%. The Hang Seng index of Hong Kong slipped 1.81% before covering some of earlier losses. The stocks all across the Mainland China recorded a decline as the Shanghai composite reduced 0.98% and the Shenzhen component index slipped 0.95%.
Investors have been watching the 10-year Treasury yield cross 1.5% mark on Monday. It has been on a continued growth path and was last recorded at 1.553%. Yields have been known to behave inversely to prices. The growing yields are anticipated to hit tech stocks over Wall Street, with the Nasdaq Composite reducing 2.83% to 14,546.68 marking its worst day since that of March. Tech stocks have been hit hardly amid increasing yields as the increasing rates are making their future cash flows to be less valuable, and in turn making the popular tech stocks to be overvalued. Tech stocks in Asia have been slipping in Wednesday morning trade, with majority of the shares of Japanese conglomerate Softbank Group declining by about 2.33% and South Korea’s Samsung Electronics dipping more than 2.62%.
Oil prices were recorded to be lower in the today’s morning for Asia-Pacific trading hours, with international Brent crude futures registering a decline in the value by 1.06% reaching USD 78.25 per barrel. The U.S. crude futures slipped 1.1% to reach USD 74.45 per barrel. The U.S. dollar index, which is known for tracking the greenback against its peers, was pegged at 93.749 which is followed by its recent jump from 93.6. The Japanese yen was recorded trading at 111.56 per dollar, which happens to be weaker than its levels before 111.2 this week.