The Magazine for Asian Investors
After the U.S. stock market fell the most since May 2021, bond yields have soared on inflation concerns.
Japan’s Nikkei 225 plunges 2.55% as the Liberal Democratic Party of Japan may be elected the country’s ruling party.
The Shenzhen index fell 1.16% as investors awaited manufacturing data and China’s manufacturing PMI. The data is scheduled to be released tomorrow.
China Evergrande Group (HK:3333) must make interest payments due on its bonds today. So far Evergrande did not give any statement whether the due payment to overseas bondholders will be settled.
Washington, D.C. is also concerned about the debt problem. After Senate Republicans blocked a Democratic push to raise the debt ceiling. If there is a default because the debt ceiling is not raised, the consequences would be severe. Treasury Secretary Yellen has already warned that a default on Treasury securities could lead to a severe financial crisis.
The S&P 500 is down 2%, its lowest level since May 2021, and the NASDAQ 100 posted its largest decline since March 2021.
The yield on 10-year government bonds continued to rise, and the 30-year bond gained almost 10 points.
“There are a lot of dramas playing out on Wall Street, and most of them have to do with inflation expectations.”