Asian Shares Mixed Amid Bond Yield Concerns
Asian stocks turned in a mixed performance on Monday as concerns persisted about a recent surge in global bond yields and the prospects of a global economic recovery.
Chinese shares rallied as China kept its benchmark lending rate for corporate and household loans unchanged for an 11th straight month at its March fixing, as widely expected.
The benchmark Shanghai Composite Index jumped 38.78 points, or 1.1 percent, to 3,443.44, while Hong Kong’s Hang Seng Index edged down 0.4 percent to 28,885.34.
Japanese shares tumbled, with automakers succumbing to heavy selling pressure after Renesas Electronics Corp. said it has halted some of the production lines at its main factory due to a fire.
Shares of the semiconductor maker plunged 4.9 percent, while automakers Honda Motor and Toyota Motor fell 3.6 percent and 3.3 percent, respectively.
The Nikkei 225 Index ended down 617.90 points, or 2.1 percent, at 29,174.15. The broader Topix closed 1.1 percent lower at 1,990.18.
The Japanese government lifted the state of emergency in the Tokyo area on Sunday despite growing concerns about a resurgence of new infections and increasing cases of new strains of the coronavirus.
Australian markets rebounded from a three-week low, with banks and casino operators leading the surge. The benchmark S&P/ASX 200 Index rose 44.30 points, or 0.7 percent, to 6,752.50 while the broader All Ordinaries Index ended up 35.40 points, or 0.5 percent, at 6,995.
Crown Resorts soared 21.4 percent after Blackstone Group Inc. offered to buy the troubled casino operator in an A$8.02 billion ($6.2 billion) deal. Rival SkyCity Entertainment rallied 3.9 percent, Tabcorp gained 2.4 percent and Aristocrat Leisure added 1.5 percent.
Banks ANZ and CBA rose about half a percent after they have reached a settlement in the U.S. rate rigging class action brought against them and a few other banks in 2016. NAB and Westpac gained 0.7 percent and 0.6 percent, respectively.
Insurers IAG, Suncorp and QBE dropped 2-3 percent fell after flash floods in the east coast stoked expectations of increased claims. Telecommunications giant Telstra rose 1.3 percent after announcing a major corporate shake-up.
Energy stocks such as Woodside Petroleum and Santos rose over 2 percent, while miners fell heavy after iron ore prices came under pressure in China.
Seoul stocks ended lower for the second day running given the recent volatility in bond yields. The benchmark Kospi slipped 4.07 points, or 0.1 percent, to finish at 3,035.46 amid selling by both foreigners and institutional investors.
While chemical and bio shares slumped, steel and machinery shares rose on expectations of improved global demand.
New Zealand shares started the week on a dismal note amid expectations that interest rates will continue on an upward trend. The benchmark NZX-50 Index tumbled 186.13 points, or 1.5 percent, to finish at 12,329.09. Utilities continued to face selling pressure, while Freightways advanced 2.7 percent.
U.S. stocks ended mixed on Friday as Treasury yields hovered near 14-month highs and the Federal Reserve said it was ending a year-long reprieve that had eased capital requirements for big banks.
The tech-heavy Nasdaq Composite rose 0.8 percent to rebound from the previous session’s sell-off, while the Dow shed 0.7 percent and the S&P 500 slipped 0.1 percent.
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