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Asian Stocks Down, Global Shares Selloff Continues as Treasury Yields Climb -Breaking


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By Gina Lee – Asia Pacific stocks were mostly down on Wednesday morning, with surging U.S. Treasury yields contributing to the continuation of a global selloff. The possibility of tighter U.S. Federal Reserve money supply policy to reduce inflation is still being considered by investors.

Japan’s slid 1.89% by 9:01 PM ET (2:01 AM GMT) and South Korea’s edged down 0.11%

Australia saw the rate fall by 0.51%. It was down 2% in January versus the 1% decline recorded the month before.

Hong Kong’s inched up 0.05%. China’s edged down 0.15% while the inched up 0.07%.

The global shares market has seen a volatile start in 2022. There have been challenges such as a Fed that is hawkish, rising inflation, and the impact of the omicron COVID-19 variation on the economy. Investors must reevaluate the value of various assets because they are being impacted by higher yields on bonds.

“Generally, we do expect to see that the bond market is going to drive volatility, more broadly based, across the equity markets and other markets as well,” CreditSights global head of strategy Winnie Cisar told Bloomberg.

A little worried about earnings for corporates in last quarter, and the first half 2022 as these could be below expectations.

In the U.S., Tuesday’s data showed that the fell to 0.70 in January. Later in the day, housing data including is expected.

According to Bloomberg, the most important question for investors is whether or not the U.S. Federal Reserve needs to raise monetary policy to keep inflation down, or if economic growth has slowed, said Dennis DeBusschere of 22V Research.

The former would be “terrible” for cyclical and technology shares, he added.

The company side: Goldman Sachs Group Inc.’s fourth quarter trading revenue (NYSE:) was less than forecast, which is further weighing on banks. Alibaba (NYSE:] Group Holding Ltd.’s U.S. Shares (HK::) fell after a report by the U.S. that it is reviewing its cloud business in order to assess the national security risk.

These companies Morgan Stanley (NYSE :), Bank of America Corp.(NYSE:), UnitedHealth Group Incorporated. (NYSE :), and Netflix Inc.

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