Stocks on Wall Street are faltering
SINGAPORE – Asia Pacific shares looked poised for a lower start on Wednesday after an overnight tumble on Wall Street, with the Nasdaq Composite down nearly 3% as bond yields soared.
Futures pointed to a lower open for Japanese stocks, with the Nikkei Futures Index in Chicago at 29650 while its counterpart in Osaka was at 29530. This compares with Nikkei 225 Last close at 30183.96.
Shares in Australia also looked poised to decline, with the SPI futures index reaching 7,157, versus S&P / ASX 200’s The last closing price is at 7,275.60.
Investors will be watching the 10-year Treasury yield, which crossed the 1.5% mark on Monday and has continued rising ever since, last sitting at 1.553%. Yields move inversely to prices.
Increased returns weighed on technology stocks on Wall Street, with the Nasdaq Composite down 2.83% to 14,546.68 on its worst day since March. Tech stocks take a hit in a high-return environment as higher rates make future cash flows less valuable, making popular stocks look overpriced.
The S&P 500 fell 2.04% to 4,352.63 while the Dow Jones Industrial Average fell 569.38 points to 3,4299.99.
The US dollar index, which measures the greenback against a basket of its peers, was at 93.766 after its recent rise from a low of 93.6.
The Japanese Yen It traded at 111.55 per dollar, weaker than levels below 111.2 seen against the dollar earlier this week. The Australian dollar It was at $0.724 after yesterday’s dip from above $0.729.