Asian stocks fell for a second day after a retreat in global equities as concern mounts over the selloff in bonds. Consumer companies led losses.
The MSCI Asia Pacific Index slid 0.1 percent to 151.43 as of 9:01 a.m. in Tokyo. While a successful auction of three-year debt helped arrest the slump in U.S. Treasuries, bonds from Europe to Japan were sold off Tuesday amid a rout that has erased more than $450 billion in value from the global market. The Stoxx Europe 600 Index sank 1.3 percent, while the Standard & Poor’s 500 Index lost 0.3 percent.
“Rising bond yields are making equities less attractive,” Shane Oliver, Sydney-based head of investment strategy at AMP Capital Investors Ltd., which manages $124 billion, said by phone. “Markets don’t go up in a straight line and after a while they get vulnerable to a pullback and this is what’s happening here. This is a correction and not the start of a bear market. We’re still seeing fairly constrained global growth and central banks are still running very easy monetary policies.”
Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.
Latest posts by marketpulsefxstaff (see all)
- Oil Remains Near Multi-Month Lows - 6 August 2015
- U.S. Dollar Higher on Recent Data - 6 August 2015
- Greece’s PM Tsipras: Loan Deal with Lenders Close - 6 August 2015