Treasury Yields Bump Up Risks for Asia Stocks as AI Rally Cools
- Rising Fed rates are risk for US economy, Asia stocks: Nomura
- US bond-market inflation gauge is rising toward 9-year high
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Inflation concerns are threatening to keep US Treasury yields higher for longer, worsening a slide in Asia stocks as investors sell chip shares after their recent rally.
The spread on yields from earnings of MSCI Asia Pacific Index members over US 10-year notes dropped close to two percentage points earlier this month for only the fourth time in the past 12 years. Asian equities fell in the two months following each of the previous three instances, as valuations looked less appealing.