Asian Markets Mixed following Another Selloff in US Stocks, Volatile Currencies

Asian stock markets were mixed on Tuesday after steep losses on Monday, as investors braced for a heightened risk of global recession, with another selloff in US stocks overnight, rising bond yields, and volatile currency markets.

As of 9.33 a.m. Thai time, the Nikkei 225 in Japan rose 0.66%. In Australia, the S&P/ASX 200 added 0.17%.

The Shanghai Composite in mainland China rose 0.28%.

South Korea’s Kospi struggled for direction and lost 0.62%, while the Hang Seng index in Hong Kong fell 0.38%. 

Major U.S. stock indexes fell overnight. The S&P 500 lost 1.03%, finishing at 3,655.04, a new low for the year of 2022. The Dow Jones Industrial Average shed 329.60 points, or 1.11%, to close at 29,260.81, putting it in a bear market. Nasdaq Composite index dropped 0.6% to 10,802.92.

The yen and yuan, along with other Asian currencies, saw modest gains, but remained at levels that have Japanese and Chinese officials worried.

Bonds in Australia and Japan stayed under pressure, while the benchmark 10-year Treasury yield held close to 3.9%, a level not seen since 2010.

As global debt markets come under pressure from prospects for further monetary tightening, the Bank of Japan started an unplanned bond purchase operation over a wide range of maturities after the country’s 20-year bond yields soared to the highest level since 2015, according to a Bloomberg report.