SYDNEY / MIAMI (Reuters) – Asian stocks fell to one-month lows on Friday as global bond markets rose in yields and scared investors amid fears that heavy losses could make it difficult to sell other assets.
The scale of the sell-off prompted the Central Bank of Australia to launch a surprise bond-buying operation to try to control the bleeding, helping yields there to reach their early peaks.
Yields on the 1
“The fixed-income route is moving into a more deadly phase for risky assets,” said Damien McCullough, head of Westpac’s interest rate strategy.
“Rising yields have long been seen mostly as a story of improving growth expectations if something underpins risky assets, but the overnight move includes, in particular, a sharp rise in real interest rates and pushing the Fed’s expectations for withdrawal.”
Markets hedged the risk of an earlier rate hike from the Federal Reserve, although officials promised this week that each move would be long in the future.
Fed stock futures are now at almost full prices to rise to 0.25% by January 2023, while the euro dollar is retreating for June 2022.
Even the thought of a possible end to the super-cheap money trembled in the world stock markets, which regularly reached record highs and stretched ratings.
MSCI’s broadest Asia-Pacific equity index outside Japan fell 2.4 percent to a one-month low, while Japan’s Nikkei lost 2.5 percent.
Chinese blue chips joined the retreat with a 2.5% drop.
NASDAQ futures fell 0.5% after a sharp drop overnight, while S&P 500 futures fell 0.1%. EUROSTOXX 50 futures lost 1.2% and FTSE futures lost 1.1%.
Over the night, the Dow fell 1.75%, while the S&P 500 lost 2.45% and the Nasdaq 3.52%, the biggest drop in almost four months for the heavy technology index.
All technology favorites have suffered, with Apple Inc, Tesla Inc, Amazon.com Inc, NVIDIA Corp and Microsoft Corp being the biggest.
All of this has increased the importance of US personal consumption data, which comes out later on Friday, which includes one of the Fed’s preferred measures for inflation.
Core inflation is actually expected to fall to 1.4% in January, which may help calm market anxiety, but any surprise upward is likely to speed up bond routing.
Rising treasury profitability has also led to breakthroughs in emerging markets, which feared that better returns in the United States could raise funds.
All currencies preferred for leverage transactions have suffered all, including the Brazilian real, the Turkish lira and the South African rand.
Flows helped broaden the US dollar, with the dollar index rising to 90,360. He also won the low-yield yen, briefly reaching a high of 106.42 in September. The euro reduced the touch to 1.2152 dollars.
The jump in yields has smeared gold, which does not offer a fixed return, and has taken it to $ 1767 an ounce from the week’s high of about $ 1815.
However, ANZ analysts were more bullish in terms of prospects.
“We now expect inflation in the United States to reach 2.5% this year,” they said in a note. “Combined with the further depreciation of the US dollar, we see the fair value of gold at $ 2,000. / ounce in the second half of the year. “
Oil prices remained close to 13-month highs, with gains limited by a sharp drop in U.S. production last week due to a winter storm in Texas. [O/R]
US oil fell 44 cents to $ 63.08 a barrel and Brent lost 33 cents to $ 66.55.