TOKYO v WASHINGTON (Reuters) – Asian equities returned on Thursday amid gains and losses, as a sell-off of Chinese technology shares sparked concerns that they will be removed from US stock markets and concerns about the lack of semiconductors shook some investors.
The largest MSCI index of Asia-Pacific equities outside Japan fell 0.07%. The index is close to erasing all the gains it has made so far this year.
Shares in Hong Kong .HSI it fell sharply at the opening, but then cleared losses to trade 0.16%. Alibaba Group Holding Ltd, Xiaomi Corp and Tencent Holdings Ltd traded less. Shares in China rose 0.28%.
Elsewhere, Japanese shares rose 1.33% and Australian shares rose 0.17% as bargain hunters bought shares of consumer goods, real estate and financial firms.
US futures rose 0.28%. Euro Stoxx 50 futures fell 0.21%, German DAX futures fell 0.1% and FTSE futures fell 0.07%.
The US securities regulator is introducing measures that would exclude foreign companies from US stock exchanges if they do not meet US audit standards and requires them to disclose any government affiliations – measures that Chinese companies are expected to affect.
In addition, concerns about the widespread economic deadlock in Europe, disruptions in the distribution of coronavirus vaccines and potential US tax increases have also affected investor sentiment.
“The rising interest rate, the uncertainty of fiscal policy, the concern about inflation all remain in the forefront for investors. However, none of these topics talk about increasing appetite for risk, ”said Peter Kenny of Kenny’s Commentary LLC and Strategic Board Solutions LLC of Denver.
“We see that last year’s big gains are less efficient than the wider market.”
On Wall Street, the Dow Jones industrial average fell 0.01%, the Nasdaq Composite fell 2.01%, while the S&P 500 lost 0.55% as optimistic comments from US Federal Reserve Chairman Jerome Powell and Treasury Secretary Janet Yellen failed to ease the profit in the technology sector.
The range of MSCI shares in the world increased by 0.06%.
U.S. crude fell 1.81% to $ 60.07 a barrel, and Brent fell 1.46% to $ 63.45 a barrel, returning some of the previous day’s gains after one of the highest The world’s largest container ship crashed into the Suez Canal, blocking a vital transport runway.
The US Treasury’s 10-year benchmark yields rose to 1.6209%, supported by positive data on the US manufacturing sector.
Investors have focused on the 10-year Treasury yield, wondering if there is room for long-term interest rates, said David Kelly, chief global strategist at JPMorgan Asset Management.
“We know the economy is poised to really start accelerating in the second quarter,” Kelly said. “But we haven’t seen this acceleration yet, so we’re waiting.”
The dollar hit a four-month high of $ 1.1804 a euro on Thursday as prolonged blockages and worries about vaccination rates in Europe hamper the common currency.
Even Germany’s reversal of a strict lockout request over the Easter period could not help the euro.
Reporting by Stanley White and Katanga Johnson; Edited by Richard Pullin and Christopher Cushing