Singapore, Aug. 22 (BNA): Asian stock markets snapped an eight-day losing streak on Tuesday, helped by a rebound in beaten-down Chinese shares, while benchmark Treasury yields scaled 16-year highs on concerns that interest rates will stay high for quite a while.
MSCI’s broadest index of Asia-Pacific shares outside Japan jumped 0.9% in mid-afternoon trade, with the Hang Seng surging 1.3%. Japan’s Nikkei rose 0.9%, helped by a positive lead from Wall Street on Monday, Reuters reported.
Benchmark 10-year yields climbed 2.5 basis points (bps) in early Tokyo trade to touch 4.366%, their highest level since 2007 and are up almost 40 bps for the month so far.
Yields go up when bond prices go down, and the rout comes in the wake of surprisingly upbeat U.S. economic news that has led investors to scale back expectations for policy easing next year.
Those higher-for-longer-interest rate fears as well as worries about China’s faltering economy have recently sapped investor appetite hunger for stocks but Tuesday brought a bit of a rebound.
S&P 500 futures turned positive late in the Asia day to rise 0.1%. European futures were last up 0.6% and FTSE futures rose 0.3%.
Treasury futures now imply 98 basis points of rate cuts in 2024, compared to 130 basis points a couple of weeks ago.
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