Asian Markets Dip Amid US Yield Surge and Earthquake Concerns, Gold Hits Record High

Asian stocks follow Wall Street’s downturn due to high US yields and an earthquake affecting the semiconductor industry, as oil rises and gold reaches a new peak amid global economic and geopolitical tensions.

Asian stock markets followed Wall Street’s downward trend on Wednesday, influenced by persistently high U.S. yields and the impact of a significant earthquake that sparked concerns over potential disruptions in the critical semiconductor industry.

Additionally, the anticipation of slower rate reductions looms as investors await U.S. economic data and comments from the Federal Reserve’s chair.

In the commodities market, oil prices continued to climb, and gold reached new record highs.

The MSCI Asia Pacific Index outside Japan saw a decline of 0.7%, while Japan’s Nikkei index fell by 1% after a robust 20% rally in the previous quarter.

Taiwanese stocks also dropped by 0.8% following a 7.2 magnitude earthquake that hit Taipei, leading to evacuation warnings across southern Japan and the Philippines.

The earthquake led Taiwan Semiconductor Manufacturing Co to evacuate some of its facilities, resulting in a 1.4% drop in its shares.

China’s blue-chip stocks and Hong Kong’s Hang Seng index saw declines of 0.3% and 0.6%, respectively, despite positive growth in the services sector in March.

In the United States, strong economic indicators have raised questions about the Federal Reserve’s rate cut expectations, with the market foreseeing around 69 basis points in easing, despite some Fed policymakers suggesting up to three rate cuts this year.

Wall Street’s major indexes experienced declines ranging from 0.7% to 1%, with Tesla’s shares dropping approximately 5% after a decrease in quarterly deliveries for the first time in nearly four years. U.S.

Treasury yields reached multi-month highs, with the 10-year yield touching a four-month peak of 4.405% before slightly retreating.

Investors are now focused on upcoming euro zone inflation data and key U.S. reports, along with a speech by Fed Chair Jerome Powell on the economic outlook.

Despite higher yields, the U.S. dollar struggled to gain against major currencies, with the yen nearing levels that previously triggered intervention by authorities.

Oil prices rose for a fourth consecutive day amid escalating geopolitical tensions and ahead of an OPEC+ meeting expected to maintain current output policies.

Meanwhile, gold prices soared to a new record high, with spot gold reaching $2,288.09 per ounce, although it encountered some profit-taking thereafter.

Also Read, Canadian Dollar Stabilizes Amid Commodity Price Surge and Interest Rate Speculations

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Pooja Chauhan
Pooja Chauhan

Pooja Chauhan: Your Source for Entertainment and Box Office News

Pooja Chauhan is a passionate writer and dedicated journalist specializing in delivering the latest updates and insights from the world of entertainment and box office. With a keen eye for detail and a deep love for cinema, Pooja brings her readers accurate and engaging coverage of all things related to movies, celebrities, and the dynamic world of showbiz. Her commitment to keeping her audience well-informed and entertained makes her a valuable voice in the realm of entertainment journalism. When she's not busy uncovering the latest scoops, Pooja enjoys exploring classic films and indulging in creative writing."
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