17 May 2022, Australia, Sydney: The Sydney skyline with the famous Opera House. Photo: Carola Frentzen/dpa (Photo by Carola Frentzen/picture alliance via Getty Images)
Carola Frentzen | Picture Alliance | Getty Images
Asia-Pacific markets were mixed on Friday as rising bond yields continue to put pressure on equities in the wake of the U.S. credit downgrade.
IG market analyst Tony Sycamore noted the yield on the U.S. 30 year bond rose by 14 basis points overnight to 4.30%, taking the yield towards its October 2022 4.42% high.
“The move higher in long end yields is being driven by lumpy bond issuance, resilient data and Fitch’s downgrade earlier in the week,” Sycamore said.
In Asia, the Reserve Bank of Australia cut the growth outlook for the country in 2023, but said inflation was “moving in the right direction”. The S&P/ASX 200 fell marginally
Japan’s Nikkei 225 was up marginally, while the Topix was also trading close to the flatline.
South Korea’s Kospi rose 0.26% and the Kosdaq climbed 0.19%.
Hong Kong’s Hang Seng index popped 1.8% on its open, while mainland markets were more mixed. The Shanghai Composite slid marginally while the Shenzhen Component was up 0.85%
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