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Asian stocks mostly fell as bond-market pressure weighed on risk
The Nikkei dropped 0.7% and the Kospi fell 3.1%, as rising U.S. Treasury yields and an upcoming PCE inflation release kept investors cautious.
Asian shares ended mostly lower on Monday, with declines across major markets reflecting pressure from U.S. bond markets as the week ahead includes the annual Jackson Hole meeting of top U.S. economic officials, the Associated Press reported.
In Tokyo, the Nikkei 225 fell 0.7% to 65,528.09, while South Korea's Kospi dropped 3.1% to 6,696.96. In Hong Kong, the Hang Seng slipped 1.8% to 25,555.11, and the Shanghai Composite eased 0.6% to 3,882.01.
Investors also looked ahead to a U.S. inflation update due Wednesday, the report on personal consumption expenditures for July, which the Federal Reserve uses as its preferred inflation measure. The AP noted that inflation has remained above 3% and that the Fed has been working to return it to a 2% target.
The backdrop included recent upward pressure on borrowing costs, after rising bond yields pushed the Treasury into an unusual intervention and raised concerns about higher rates weighing on consumer spending. The 10-year Treasury yield rose back to 4.73% on Friday, and the article said the 30-year yield is near its highest level since 2007.
Latest closeNikkei 225 68,308.59 ▲1.2%|Hang Seng 25,396.51 ▼0.2%|Kospi 6,813.34 ▲3.6%