f
  •  
Asian Stocks Up as Bonds Steady, But Inflation Worries Persist © Reuters.

By Gina Lee

Investing.com – Asia Pacific stocks were mostly up Tuesday morning, clawing back some gains following their U.S. counterparts’ fluctuation during the previous session.

Hong Kong’s Hang Seng Index rose 0.97% by 10:30 PM ET (3:30 AM GMT). Bookings for the city’s residents to be inoculated with Sinovac’s Coronavac vaccine opened earlier in the day. Debate on reforming the city’s election rules continued, with Chief Executive Carrie Lam telling a press conference earlier in the day, “it is crystal clear we have reached a stage where the central authorities will have to take action to address the situation, including electoral reform.”

China’s Shanghai Composite was up 0.34% while the Shenzhen Component fell 0.60%.

South Korea’s KOSPI was down 0.51% while in Australia, the ASX 200 gained 0.54%. Japanese markets were closed for a holiday.

Investors are now re-evaluating expectations for a quick recovery from COVID-19 and the inflation that is driving both commodities and bond yields up. The rally in global shares in 2020 in the wake of COVID-19 is also under scrutiny as the cost of longer-term borrowing rise.

Concerns over the rising bond yields have even made their way up to policymakers, with European Central Bank (ECB) President Christine Lagarde saying on Monday that her institution is “closely monitoring” the market for government bonds.

There are also rising concerns that shares have already priced in a good part of the global economic recovery expectations that have been driven by global COVID-19 vaccine rollouts and the prospect of further U.S. stimulus packages. There are also concerns that central banks such as the ECB led by Lagarde will eventually ease emergency fiscal programs that have boosted global markets.

The key drivers of equities “may be fading as markets come to terms with the next phase of the recovery … I wouldn’t be surprised if market returns are more volatile in the coming months. My approach to fixed income would be to look for opportunities to start to buy the long end again,” AXA Investment Managers chief investment officer Chris Iggo told Blomberg.

Bond markets steadied after the gap between five and 30-year yields, a key part of the U.S. Treasury curve, climbed to the highest level in over six years. Cash Treasuries will not be traded on Tuesday on account of the Japanese holiday.

Other investors were also pessimistic.

“The sell-off in bonds is like a car crash in slow motion for equity investors … a higher interest rate environment forces investors to consider the opportunity costs of investments. Stocks that have significant borrowing, or produce no income for investors, may be particularly vulnerable,” CMC Markets chief market strategist Michael McCarthy told Reuters.

Elsewhere, Bitcoin traded below the $53,000 mark after dropping as much as 17% Monday.


Other relevant articles 
[2021-02-23 03:05:03] Asian stocks slip as global rally skids on inflation fears
[2021-02-22 04:40:26] Asian Stocks Down, With Yield Worries Creeping In
[2021-02-19 04:45:10] Asian Stocks Down, Weighed Down by Higher Bond Yields,...
[2021-02-19 03:40:09] Asian stocks step back from record highs on rising bond yields, weak U.S. data
[2021-02-18 04:15:07] Asian Stocks Mixed, Chinese Stocks Soar After Returning From...
[2021-02-18 00:45:12] Asian markets eye muted start on economic hopes, pandemic fears
[2021-02-17 12:45:11] Exclusive: Kuwait plans to shorten oil supply deals for some...
[2021-02-17 04:25:06] Asian Stocks Down, Inflation Worries Overshadow COVID-19 Recovery...
[2021-02-17 01:00:11] Asian markets offer mixed signals as investors juggle stimulus, pandemic
[2021-02-16 04:20:26] Asian Stocks Up Over COVID-19 Vaccine Enthusiasm, But Warnings...
[2021-02-15 01:45:25] Asian shares hit all-time highs, oil buoyant
[2021-02-11 07:45:07] Asian businesses suffer Lunar New Year blues over travel curbs
[2021-02-11 02:55:06] Asian Stocks Down, Rally Loses Steam as Investors Digest U.S....
[2021-02-10 04:15:03] Asian Stocks Up Over Growing Recovery Hopes, But Sustainability...
[2021-02-10 01:30:07] Asian stocks make cautious gains after patchy Wall St. rally
[2021-02-09 04:05:25] Asian Stocks Up, Clings Onto Gains After U.S. Shares’ Record Day
[2021-02-09 01:00:35] Stocks trying to hold momentum in Asian after U.S. records
[2021-02-08 09:40:21] Asian chipmakers rush to boost production to meet global shortage
[2021-02-08 04:15:22] Asian Stocks Up, Boosted by Yellen Push for U.S. Stimulus...
[2021-02-08 01:45:22] Asian shares near all-time peak, oil heads to $60 on economic revival hopes
[2021-02-05 03:55:16] Asian Stocks Up, Boosted by Corporate Earnings, Positive U.S....
[2021-02-05 01:30:11] Asian futures flat after Wall Street closes at record highs
[2021-02-04 04:25:06] Asian Stocks Down, Exercise Caution Even After Retail Frenzy...
[2021-02-04 01:55:21] Asian stocks ease as caution persists despite calmer markets
[2021-02-03 03:45:07] Asian Stocks Mixed Over Disappointing China Data
[2021-02-03 02:00:24] Asian shares push higher on improving coronavirus outlook
[2021-02-02 09:30:04] Asian equities see outflows in January on worries over...
[2021-02-02 04:15:26] Asian Stocks Up, Boosted by “Very Productive” U.S. Stimulus Talks
[2021-02-02 01:35:26] Asian markets firmer as retail frenzy unsettles outlook
[2021-02-01 08:10:23] Asian factories have mixed performance as pandemic impact lingers
[2021-02-01 04:10:22] Asian Stocks Up Despite Disappointing Chinese Data, Retail...
[2021-01-29 04:00:13] Asian Stocks Rise, Follow U.S. Lead After Volatile Day
[2021-01-29 00:55:11] Asian equities set to gain as short-squeeze subsides; dollar...
[2021-01-28 04:45:08] Asian Stocks Down, Follows Rout in U.S. Shares as Valuations...
[2021-01-27 05:25:22] Asian Stocks Mostly Up, Focus on U.S. Stimulus and Fed Policy...
[2021-01-27 01:10:07] Asian shares set for mixed opening, eyes on Fed, stimulus
[2021-01-26 06:05:10] Kuaishou to Give Asian IPOs the Best Start to a Year Since 2010
[2021-01-26 04:30:26] Asian Stocks Down, Question on When, How Much U.S. Stimulus...
[2021-01-26 01:25:25] Asian stocks set for soft start, dollar mostly steady
[2021-01-25 03:45:28] Asian Stocks Up, But Ever-Increasing COVID-19 Cases on Investors’...
[2021-01-25 02:00:24] Asian shares under pressure on rising coronavirus cases
[2021-01-24 12:20:18] Dutch police arrest alleged Asian drug syndicate kingpin
[2021-01-22 04:00:12] Asian Stocks Down, Presses Pause on U.S. Stimulus-driven Rally
[2021-01-22 01:00:13] Asian markets set for messy open after U.S. stocks peak following Biden inauguration
[2021-01-21 03:30:08] Asian Stocks Up, “Positive Day” Ahead After Biden Inauguration
[2021-01-21 01:00:13] Asian stocks set for strong start after day of gains on Wall...
[2021-01-20 12:20:07] Canadian exchange operator TMX to start 23-hour derivatives...
[2021-01-20 04:25:06] Asian Stocks Up, Follows U.S. Shares Modest Gains Over U.S....
[2021-01-20 01:05:07] Asian markets set for modest upswing after gains on Wall Street
[2021-01-19 03:25:03] Asian Stocks Up, Yellen Likely to Take “Reassuring Stance” at...
[2021-01-19 02:05:26] Oil Holds Losses Near $52 Amid Nervousness Over Asian Demand
[2021-01-18 03:55:24] Asian Stocks Mixed, Chinese Stocks Up Over Better-Than-Expected...
[2021-01-15 03:30:12] Asian Stocks Mixed, Concerns About $1.9 Trillion “American Rescue...
[2021-01-14 06:55:16] Bullish bets on Asian FX trimmed as investors eye high U.S....
[2021-01-14 03:45:10] Asian Stocks Up Over Expectations of Further U.S. Stimulus, Trump...
[2021-01-13 04:50:26] Asian Stocks Up, Increased U.S. COVID-19 Vaccine Rollout Raise...
[2021-01-13 01:55:08] Asian shares make cautious gains after choppy Wall Street session
[2021-01-12 03:50:32] Asian Stocks Mostly Up, But Valuation, Yields Concerns Remain
[2021-01-11 04:50:34] Asian Stocks Up Over Biden Promise of “Trillions” in COVID-19...
[2021-01-08 04:25:10] Asian Stocks Up Over Hopes for More U.S. Stimulus, Peaceful...
[2021-01-08 01:30:11] Asian stocks jump as revived recovery hopes push Wall St to new highs
[2021-01-07 07:25:07] Foreigners net sellers of Asian equities in 2020, despite fourth-quarter turnaround
[2021-01-07 04:00:08] Asian Stocks Up, Mostly Unperturbed by Chaos in Washington D.C.
[2021-01-06 04:10:07] Asian Stocks Down as Vote Counting Starts for Georgia Election
[2021-01-06 02:05:06] Asian stocks mixed as markets await U.S. runoff results
[2021-01-05 04:30:04] Asian Stocks Mixed, Georgia Elections, Rising COVID-19 Cases on...
[2021-01-05 02:05:26] Asian shares fall amid uncertainty about Georgia senate runoff
[2021-01-04 05:15:23] Asian factories shake off COVID-19 hit, tighter controls cloud outlook
[2021-01-04 04:40:22] Asian Stocks Up, But Gains Capped By Prospect of a New Japanese...
[2020-12-31 04:05:08] Asian Stocks Up Over Vaccine and Global Economic Recovery Hopes...
[2020-12-31 01:55:11] Asian shares hover near record high, risk currencies in favor
[2020-12-30 04:25:07] Asian Stocks Up, Even as Senate Decision on U.S. Stimulus Checks...
[2020-12-30 01:30:08] Asian shares pause recent rally, euro near 2-1/2-year high
[2020-12-29 04:25:03] Asian Stocks Up as U.S. Stimulus Measures Drive Hopes for...
[2020-12-29 03:20:25] Asian shares rise on U.S. stimulus fix, Nikkei hits 30-year high
[2020-12-28 04:50:30] Asian Stocks Up After Trump Approved Latest U.S. Stimulus...
[2020-12-24 04:10:06] Asian Stocks Up as Possible Brexit Deal Brings Christmas Cheer
[2020-12-24 00:55:10] Asian stocks eye gains as Brexit deal hopes grow
[2020-12-23 04:15:07] Asian business confidence gains steam, pandemic still top risk...
[2020-12-23 04:10:06] Asian Stocks Up, But Muted by Trump Threats Over Latest U.S....
[2020-12-23 01:00:09] Asian shares set for mixed open on resurgent virus worries
[2020-12-22 04:25:25] Asian Stocks Down Over “Worrying” B.1.1.7 strain
[2020-12-22 02:15:25] Analysis: New blank-check firms arm up for Asian unicorn hunt
[2020-12-22 01:15:26] Asian stocks slip on fresh COVID-19 concerns
[2020-12-21 04:20:26] Asian Stocks Down Over U.K. Lockdowns Prompted by New COVID-19...
[2020-12-18 17:25:11] Crude Oil Prices Hit New Highs as Cold Snap Supports Asian Demand
[2020-12-18 04:35:10] Asian Stocks Mixed as U.S. Stimulus Measures Negotiations...
[2020-12-18 04:30:11] Asian Stocks Mixed, U.S. Stimulus Measures Negotiations Continue
[2020-12-18 01:40:26] Asian stocks defy broader global rally, Brexit worries emerge
[2020-12-17 04:05:06] Asian Stocks Up Over Wait-And-See Whether U.S. Stimulus “Gets...
[2020-12-16 03:50:07] Asian Stocks Up Over COVID-19 Vaccine, U.S. Stimulus Package...
[2020-12-15 04:25:02] Asian Stocks Down as COVID-19 Vaccine Fatigue Sets In
[2020-12-15 01:10:28] Asian stocks dip as investors curb vaccine enthusiasm
[2020-12-14 03:55:21] Asian Stocks Up Over U.S. Vaccine Approval, Fed Policy Meeting...
[2020-12-11 03:45:11] Asian Stocks Down as No Signs of U.S. Stimulus Measures Consensus...
[2020-12-11 00:55:11] Asian markets wary over stimulus, pandemic concerns
[2020-12-10 04:10:07] Asian Stocks Down as U.S. Stimulus, Brexit Deadlines Loom
[2020-12-10 00:55:07] Stimulus, Brexit talks weigh on Asian markets
[2020-12-09 04:15:03] Asian Stocks Up Over Rasised Hopes for U.S. Stimulus Measures
[2020-12-09 01:00:09] Asian markets look to rise on vaccine, stimulus hopes