Asian stocks fell on Thursday as rising yields on benchmark U.S. Treasury bonds fanned worries about inflation and the economic outlook. Investors awaited U.S. Federal Reserve Chairman Jerome Powell’s speech at a Wall Street Journal conference later today, where he may address concerns about the risk of a rapid rise in long-term borrowing costs.
Mainland Chinese stocks slipped on the day, with the Shanghai composite down 2.1% while the Shenzhen component dropped 3.5%. In Japan, the Nikkei 225 fell 2.1% while the Topix index shed 1.0%. South Korea’s Kospi also slipped 1.3%.Shares in Australia also declined as the S&P/ASX 200 fell 0.8%. Hong Kong’s Hang Seng index closed 2.15%
The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 91.049 following an earlier low of 90.972. Other safe-haven currencies were soft, with the Swiss franc flirting with a four-month low against the dollar and a 20-month trough versus the euro.
Oil prices rose for a second straight session early on Thursday, as the possibility that OPEC+ producers might decide against increasing output at a key meeting later in the day underpinned alongside a drop in U.S. fuel inventories.