scorecardresearchGlobal Markets Wrap: Asian Stocks Feel the Weight of US Recession Fears

Global Markets Wrap: Asian Stocks Feel the Weight of US Recession Fears

Updated: 08 Dec 2022, 08:47 AM IST
TL;DR.

Stocks in Asia fell after the S&P 500 slipped for a fifth day and Treasuries flashed warning signs of recession. The dollar strengthened in an indication of demand for havens.

A currency trader watches monitors at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Friday, Nov. 18, 2022. Asian stocks were mixed Friday after Wall Street declined following indications the Federal Reserve might raise interest rates higher than expected to cool inflation. (AP Photo/Ahn Young-joon)

A currency trader watches monitors at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Friday, Nov. 18, 2022. Asian stocks were mixed Friday after Wall Street declined following indications the Federal Reserve might raise interest rates higher than expected to cool inflation. (AP Photo/Ahn Young-joon)

(Bloomberg) -- Stocks in Asia fell after the S&P 500 slipped for a fifth day and Treasuries flashed warning signs of recession. The dollar strengthened in an indication of demand for havens.

Equities in Japan, Australia and South Korea dropped, along with futures for US and European benchmarks. Stocks in Hong Kong rose after media reports that mask-wearing requirements would be scrapped. Shares in mainland China fluctuated. 

The dollar resumed gains after a small decline Wednesday. The offshore yuan held below the 7 level to the greenback as investors continued to balance China easing Covid restrictions and a dimming outlook for the global economy.

Bonds rose in Australia, with the 10-year yield falling 3 basis points to 3.33%. Treasury yields of the same maturity rose after a sharp decline in the prior session. 

Chinese regulators asked the nation’s biggest insurers to buy bonds being offloaded as retail customers pull their cash from fixed-income investments, according to people familiar with the matter.

Elsewhere in markets, oil rose after a four-day drop as investors weighed the impact of China’s moves to ease virus curbs against a looming US slowdown.

Gold was little changed after rising 0.9% in the previous session on weakness in Treasury yields, with traders looking to Friday’s US producer price report to gauge the Federal Reserve’s next monetary policy moves.

 

First Published: 08 Dec 2022, 08:47 AM IST