HONG KONG, China (AFP) — Asian stocks began Wednesday mixed after a volatile session for US equities and as yields on Treasury bonds retreated from a seven-year peak.
Japanese shares opened higher after four days of losses — with purchases making up for the higher yen’s dampening impact — before dropping back into negative territory in mid-morning trade.
“After four days of falling… Japanese shares are in a good place for bargain-hunting buys, even though a higher yen is somewhat weighing on the market,” Yoshihiro Ito, chief strategist at Okasan Online Securities, said in a commentary.
Hong Kong was up 0.79 percent in morning trading, and Shanghai was up at 0.41 percent, moving back into positive territory for a second day after Monday’s rapid sell-off.
But global markets remained cautious on a number of fronts.
US and European markets meandered on Tuesday, with investors nervous after 10-year US Treasury bond yields surged above 3.0 percent and the IMF sounded a cautious note on the global economy.
On Wall Street, the Dow closed down 0.2 percent at 26,430.57 with US shares facing another day of pressure over higher interest rates.
“Markets continued their tenuous voyage through a pothole-encumbered landscape, dealing with the fragile US-China relations… and Brexit developments providing more ambiguity,” said Stephen Innes, head of Asia-Pacific trading at OANDA.
“It’s no wonder investors have a high level of misgivings.”
The euro was slightly higher against the dollar and the yen as traders refocus on Brexit talks.
Eyes on China
Eyes were fixed on the Chinese yuan Wednesday amid a backdrop of deepening US-China tensions and a weak yuan, following steps this week from authorities to spur lending in the economy.
Last week the yuan hit a 19-month low, with growing fears the currency was sliding towards the psychological milestone of