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Global market update: APAC shares open mixed as yields surge on inflation fears

EditorOliver Gray
Published 17/04/2024, 10:47 am
© Reuters.

Investing.com - Global stock markets experienced a mixed opening on Wednesday, following a slight downturn in US stocks on Tuesday as yields soared to a five-month high.

By 10:45 am AEST (12:45 am GMT) the ASX 200 ticked 0.1% higher, the KOSPI 200 added 0.2% and the Nikkei 225 fell 0.8%.

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Tuesday saw the Dow Jones Industrial Average ending on a high note, while Treasury yields reached a new five-month peak. This occurred after Federal Reserve Chair Jerome Powell intimated that the central bank might need to delay interest rate cuts due to persistent inflation.

The S&P 500 fell by 0.2% after experiencing the largest two-day decline since March 2023. The Dow managed to break a six-day losing streak, rising by 0.2%, or approximately 64 points. The NASDAQ Composite, however, slipped by 0.1%.

In the commodities market, Brent crude oil decreased by 0.1% to US$90.02 a barrel, while gold increased by 0.1% to US$2,384.69. The yield on Australian 2-year government bonds rose to 3.93%, and the 10-year yield also increased to 4.33%. US Treasury notes saw a rise, with the 2-year yield at 4.99% and the 10-year yield at 4.67%.

In Asia, Chinese shares closed lower despite a surprising increase in Q1 GDP growth. An array of Chinese economic data revealed an uneven revival across sectors. The Shanghai Composite Index ended 1.65% lower at 3007.07, the Shenzhen Composite Index declined by 3.8%, and the ChiNext Price Index dropped by 2.0%.

In Hong Kong, the Hang Seng Index fell 2.1% to close at 16248.97. Japanese stocks also closed lower, with the Nikkei Stock Average falling 1.9% to 38471.20. Indian shares followed their Asian counterparts, with the benchmark Sensex losing 0.6% to 72943.68.

In Europe, shares closed significantly lower on Tuesday, with the pan-European Stoxx Europe 600 losing 1.53% to 498.21, the CAC 40 slipping 1.4% to 7,932.61, and Germany's DAX dropping 1.44% to 17,766.23. The FTSE 100 closed down 1.8% Tuesday due to concerns over geopolitical tensions in the Middle East and delays in US rate cuts.

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