Investors are focusing on tightening monetary policy as concerns persist about the omicron variant’s threat to global growth and company earnings. Fed officials said a strengthening economy and higher inflation could lead to earlier and faster rate increases than expected, with some also favoring moves to shrink the balance sheet soon after.
SGX Nifty futures traded at 17,838, down 135.50 points, or 0.75%, in early deals on Thursday
Asia stocks fall as tech rout deepens
Stocks in Asia dropped Thursday after a selloff in U.S. technology shares and Treasuries accelerated once Federal Reserve minutes signaled interest-rate hikes may be more aggressive than many had expected.
An MSCI Inc. index of the region’s equities retreated for the third day in four, though declines were more restrained than in the U.S. U.S. contracts fluctuated after the Nasdaq 100 tumbled the most since March as rising Treasury yields added to concerns over growth and profitability. The S&P 500 retreated as traders increased bets U.S. rates will increase at least three times this year.
The yield on the U.S. 10-year note pared some of its gains. It climbed to 1.71%, a level not seen since April. Overnight swaps markets moved to price in an 80% chance of a 25 basis-point hike at the Fed’s meeting in March. The dollar was little changed.
A selloff in Chinese tech companies eased in Hong Kong. Chinese companies listed in the U.S. extended their decline after Tencent Holdings Ltd. cut its stake in an online gaming company, triggering concerns of similar action at other firms amid Beijing’s regulatory crackdown on the sector.
S&P 500 futures rose 0.1%, while Nasdaq 100 futures rose 0.1%.
Japan’s Topix index fell 1%, Australia’s S&P/ASX 200 Index fell 1.3%, South Korea’s Kospi index lost 0.6%, Hang Seng Index was little changed, and Shanghai Composite Index fell 0.4%.
Overnight, stocks closed lower on Wall Street after minutes from the Federal Reserve’s last meeting raised expectations that the central bank will move faster to raise interest rates to fight inflation.
The S&P 500, The Dow Jones Industrial Average and the Nasdaq fell. Drops in major technology stocks were the biggest weight on the market.
The S&P 500 fell 92.96 points, or 1.9%, to 4,700.58. The Dow Jones Industrial Average fell 392.54 points, or 1.1%, to 36,407.11. The Nasdaq fell 522.54 points, or 3.3%, to 15,100.17.
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