Asian Shares Retreat On Rate Hike Worries

Asian stocks declined on Thursday, tracking steep losses on Wall Street overnight on surging bond yields and mixed earnings news.

Investors also awaited cues from U.S. third-quarter gross domestic product data due later in the day before a Federal Reserve meeting next week.

The dollar rose in Asian trading and gold climbed on safe-haven buying, while oil prices slipped on data showing an increase in U.S. stockpiles.

Chinese stocks reversed course to end higher on optimism about domestic economic recovery. The benchmark Shanghai Composite Index rose 0.5 percent to 2,988.30, while Hong Kong’s Hang Seng Index ended down 0.2 percent at 17,044.61.

Japanese shares fell sharply amid uncertainty over monetary policy after the benchmark 10-year Japanese government bond yield hit a fresh 10-year high.

Speculation was rife that the Bank of Japan could make further adjustments to its yield curve control policy at next week’s monetary policy meeting.

The Nikkei 225 Index plunged 2.1 percent to 30,601.78, while the broader Topix Index settled 1.3 percent lower at 2,224.25.

Tech stocks followed their U.S. peers lower, with Tokyo Electron, SoftBank Group, Screen Holdings and Advantest falling 4-7 percent.

Seoul stocks tumbled as concerns around Middle East tensions and mixed signals from the Federal Reserve on rates overshadowed upbeat data showing the country’s GDP grew at a slightly faster-than-expected pace in the third quarter.

The Kospi plummeted 2.7 percent to 2,299.08. SK Hynix plunged 5.9 percent after the chipmaker reported a 1.8 trillion won ($1.3 billion) operating loss in the third quarter.

Australian markets fell to close at another new low for the year after the new RBA Governor Michele Bullock hinted that there might be a rate increase in November. Data showing a decline in third quaretr export prices also weighed on markets.

The benchmark S&P/ASX200 Index dropped 0.6 percent to o 6,812.30, marking its lowest close since October 28, 2022. The broader All Ordinaries Index closed 0.6 percent lower at 7,001.10.

Megaport, a leader in virtual networking technology, slumped 16.3 percent after releasing its latest quarterly update.

Azure Minerals soared 43 percent after it agreed to a A$1.6 billion ($1 billion) takeover bid from Chile’s lithium producer SQM.

Across the Tasman, New Zealand’s benchmark S&P NZX-50 Index dropped 0.3 percent to 10,848.54.

U.S. stocks fell sharply overnight following disappointing quarterly results from Google-parent Alphabet and an increase in Treasury yields.

The tech-heavy Nasdaq Composite plummeted 2.4 percent to log its biggest single-day loss since February 21 and the S&P 500 tumbled 1.4 percent to end below the 4,200 level for the first time since May, while the narrower Dow dropped 0.3 percent.

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