Asian stocks fell on Wednesday after a Wall Street selloff following Treasury yields reaching pre-pandemic highs underscoring investors sentiment as Federal Reserves tightens monetary policy to combat inflation.
MSCI Asia Pacific index ex Japan lowered for the fifth session. Major indexes in Asia tracking U.S. loss that saw S&P 500 to drop by 1.84% and teach heavy Nasdaq 100 sank 2.6%. In Asia TOPIX inched down the highest by 1.80%.
Expectation grows 10 year treasury yield to top 2%. Speculation is growing that the Fed may deliver more than a quarter-percentage point interest-rate hike in March.
Rising yield also battered dollar index which edged lower to 95.73 giving room to worst hit currencies in Asia to rise.
