- US bond yields are lifting again following a market holiday on Monday.
- Despite the increase in yields, it has not had a major impact on Asian financial markets as yet.
- Chinese stocks are trading mixed after being slammed lower on Monday. The Chinese yuan is also fractionally stronger against the greenback.
After being forced to pause by the Columbus Day holiday, the relentless march higher in US bond yields has resumed in Asian trade on Thursday with benchmark 10-year yields hitting a session high of 3.252%, according to pricing from Thomson Reuters, a fresh seven-year peak.
They currently sit just off those levels at 3.25%.
Despite the continued advance, the modest increase in yields has not unsettled investors in Asia with stocks and currencies trading mixed on Tuesday.
That could reflect that many risk assets across the region have already fallen substantially in recent months, including recently by the lift in US yields.
Here’s how stocks are faring at 2.15pm in Sydney.
Australia ASX 200 6042.10 , -0.95%
NZ NZX 50 9067.02 , -0.88%
Japan TOPIX 1770.19 , -1.25%
Shanghai Comp 2718.07 , 0.06%
Shenzhen Comp 1384.37 , -0.14%
HK Hang Seng 26269.88 , 0.26%
Sth Korea KOSPI 2253.83 , -0.60%
Sinagpore STI 3173.99 , -0.23%
Taiwan TAIEX 10470.51 , 0.14%
Philippines PSI 7032.89 , -0.25%
Indonesia JKSE 5766.78 , 0.10%
Malaysia KLCI Index 1773.13 , -0.15%
Thailand SET 1697.02 , 0.05%
S&P 500 Futures 2892.5 , -0.04%
The TOPIX in Tokyo is faring the worst, playing catch-up to the selloff across the region seen on Monday. Investors were speared the selling pressure due to a public holiday, but that has clearly changed today.
A stronger Japanese yen is also a factor that may be weighing on listed Japanese exporters.
Elsewhere, stocks in Australia, New Zealand and South Korea are also extending losses seen earlier in the week. Other markets are trading mixed, including in China following the largest one-day selloff in several years on Monday.
Perhaps explaining the more resilient performance from Chinese stocks, the yuan is modestly stronger against the greenback despite the PBoC setting the midpoint of the USD/CNY daily trading range at 6.9019, weaker than the 6.8957 level of Monday.
The marginally stronger yuan has helped limit losses in Asian currencies despite the increase in US yields.
AUD/USD 0.7082 , 0.08%
NZD/USD 0.6443 , -0.05%
USD/JPY 113.12 , -0.10%
USD/CNY 6.9191 , -0.14%
USD/CNH 6.9186 , 0.00%
USD/HKD 7.8310 , 0.03%
USD/KRW 1134 , 0.01%
USD/SGD 1.3834 , -0.01%
USD/TWD 30.96 , 0.02%
USD/PHP 54.17 , 0.07%
USD/MYR 4.155 , 0.05%
USD/IDR 15230 , 0.10%
USD/THB 32.91 , 0.03%
US Dollar Index 95.76 , -0.01%
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