Stock Groups

Interest rates, oil prices and dollar


SINGAPORE — Asia-Pacific markets traded mixed on Wednesday following an overnight sell-off on Wall Street.

It Nikkei 225Japan saw a drop of 1.49% and the Topix index fell by 1.54%. South Korean shares mixed: The KospiThe Kosdaq lost 0.24% and retraced its losses, while the Kosdaq dropped 0.21%.

Hong Kong Hang Seng indexWhile the Hang Seng Tech index which is tech-focused was up 0.16%, it rose 0.4%.

Chinese mainland shares suffered early trade losses: Shenzhen componentIt was down 0.4% while Shanghai composite fell 0.12%.

Australia is home to the ASX 200As most sectors trade lower, the drop in the subindex dropped to 0.48%. As the nation’s top banks sold, 0.7% of the heavily weighted subindex in financials fell.

“Equity markets dropped overnight while oil stock gained overnight as markets expect central bank to increase rates quicker to control inflation,” ANZ Research analyst wrote Wednesday morning.

The Dow Jones Industrial Average in the States lost over 540 points following. Goldman SachsShares were sold as analysts failed to predict earnings by the bank. The S&P 500 as well as the Nasdaq Composite, which comprises technology stocks sensitive to interest rates, also declined sharply.

Sony shares tumble

Sony shares fell 9.1% following the collapse of Japanese conglomerate Sony MicrosoftOn Tuesday, it announced that it would be buying an online game publisher Activision Blizzard for almost $69 billion — it is set to be the biggest U.S. tech deal everIt surpasses 2016 Dell-EMC merger.

Sony is the maker of PlayStation gaming consoles and competes against Microsoft’s Xbox consoles. Microsoft purchased Bethesda for $7.5 million last year.

Activision has a number of marquee brands, including World of Warcraft and Call of Duty.

Other shares of the embattled operator cruise ship company Genting Hong KongUntil further notice, the suspension was lifted. In a regulatory filingGenting stated that it would file to liquidate the company and to apply to the appointment of interim liquidators because it couldn’t secure the funds it needed to remain afloat.

Genting indicated that the company’s cash reserves will run out by January end. This month was earlier. the company warned it may not be able to pay its debts and other obligationsAfter its German shipbuilding division MV Werften declared insolvency,

Genting stated that Dream Cruises will continue to operate the cruise business.

Currencies, oil

On the currency exchange, there are U.S. dollarThe price of the basket of its peers was 95.758, which is close to flat.

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According to ANZ Research, the rise in U.S. yields weighed upon risk appetite but gave a lift for the global main reserve currency.

On Tuesday, the yield of the 10-year Treasury Note topped 1.87%. This is its highest point in two years after it was 1.5% when the year began. For the first time since 2012, the 2-year rate (which reflects short-term expectations of interest rates) surpassed 1%.

It Japanese yenThe exchange rate was 114.67/dollar, while the Australian dollarTraded close to flat at $0.7188

Overnight, oil prices reached a seven year high after the Houthi rebels from Yemen claimed that they were responsible for an attack on Abu Dhabi. This has led to renewed tensions within the region. United Arab Emirates vowed to retaliateThey should be avoided

Both Brent International and U.S. crude futures moved more than 1 and 2 percent respectively, as the oil contract reached their highest point since October 2014.

“Global oil demand continues to remain resilient despite the latest surge in Covid‑19 cases from the highly‑transmissible omicron variant,” Vivek Dhar, mining and energy commodities analyst at the Commonwealth Bank of Australia, said in a morning note.

Because around two-thirds (or more) of the world’s oil consumption are tied to mobility, he explained that Covid-19 is more susceptible than any other commodity to oil demand.

He wrote that “Fears are diminishing that the Omicron variant of oil consumption will cause severe damage” and that jet fuel consumption continues to rise.

Wednesday during Asian trading hours U.S. crudeIt was 1.7% higher at $86.88 per barrel