Asian Shares Mostly Lower On Recession Fears

Asian stocks ended broadly lower on Friday, as the dollar rose with Treasury yields as hawkish signals from Federal Reserve officials ramped up fears of a U.S. recession.

The U.S. benchmark 10-year Treasury yield hit fresh 14-year peaks after Federal Reserve Bank of Philadelphia President Patrick Harker said on Thursday the central bank will “keep raising rates for a while” to curb inflation.

China’s Shanghai Composite Index edged up 0.1 percent to 3,038.93 after reports emerged that authorities are considering reducing the duration of quarantine for inbound visitors.

Investors also awaited the release of third-quarter economic growth data and the highly anticipated decision that President Xi Jinping will secure an unprecedented third term to rule the world’s second-largest economy.

Hong Kong’s Hang Seng Index slipped 0.4 percent to 16,211.12, with tech stocks coming under selling pressure amid renewed concerns over a U.S. blockade on semiconductor exports to China.

Japanese shares closed lower as the Bank of Japan conducted emergency bond buying operations for a second straight day in its latest move to curb elevated yields.

Data showed earlier in the day that Japanese consumer price inflation hit an eight-year high in September, challenging the Bank of Japan’s resolve to retain its ultra-easy policy stance.

The Nikkei 225 Index dropped 0.4 percent to 26,890.58, while the broader Topix ended 0.7 percent lower at 1,881.98. While real estate stocks led losses, chip-related stocks such as Advantest, Screen Holdings and Tokyo Electron rallied 2-5 percent.

Seoul stocks slipped, the Korean won weakened, and the benchmark bond yield hit an 11-1/2-year high amid concerns over the Fed’s aggressive tightening. The Kospi closed 0.2 percent lower at 2,213.12, extending losses for a third session.

Australian markets fell notably, dragged down by healthcare stocks and financials. The benchmark S&P/ASX 200 Index fell 0.8 percent to 6,676.80, recording its second weekly loss. The broader All Ordinaries Index ended 0.7 percent lower at 6,869.90.

Across the Tasman Sea, New Zealand’s benchmark S&P/NZX 50 Index ended down 0.5 percent at 10,782.36.

U.S. stocks ended in the red overnight, as Treasury yields extended their climb on hawkish Fed comments.

Another batch of upbeat earnings news from big-name companies like IBM Corp. and AT&T helped to cap the downside to some extent.

The Dow dipped 0.3 percent, the S&P 500 shed 0.8 percent and the tech-heavy Nasdaq Composite declined 0.6 percent.

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