Hong Kong, Feb. 22 (BNA): Asian stocks fell to a 47-day low on Wednesday as rising interest rate expectations and geopolitical tensions weighed on risky assets.
MSCI’s broadest index of Asia-Pacific shares outside Japan fell 1.02%, hitting its lowest level since Jan. 6.
Japan’s Nikkei fell 1.32%, its worst performance in nearly a month after Tuesday’s PMI report showed the factory sector contracted, Reuters reported.
The Bank of Japan (BOJ) said on Wednesday it would conduct emergency bond purchases, in a move to contain rising yields. Japan’s 10-year government bonds touched 0.505% for the second consecutive session, breaching the Bank of Japan’s 0.5% ceiling and reaching higher. The highest level since January 18.
New Zealand’s central bank raised interest rates by 50 basis points to a 14-year high of 4.75%.
The central bank said it expects to continue tightening further to ensure inflation returns to its target range over the medium term.
Wall Street posted its worst performance of the year on Tuesday, with an unexpectedly strong S&P Global Composite PMI reading showing that the US economy has yet to cool off.
China’s benchmark index fell 0.68% and Hong Kong’s Hang Seng fell 0.09%.
Australia’s S&P/ASX 200 lost 0.3% on Wednesday, falling for a second straight session and touching its lowest in more than a month on expectations of a rate hike.
E-mini futures for the S&P 500 rose 0.16%.
The 10-year US bond touched 3.966%, the highest level since November, before falling to 3.948% on Wednesday.
The dollar index was flat, but analysts expect higher interest rates to raise the dollar, and hurt emerging market stocks, which benefited from the dollar’s decline.
US crude fell 0.46% to $76.01 a barrel, and Brent crude was at $82.74, down 0.37%.
Spot gold rose 0.1% to $1,835.28 an ounce.
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