Asia-Pacific stocks set for opening fall following Wall Street tumble
- Futures pointed to a lower open for Asia-Pacific stocks.
- The Nasdaq Composite plunged nearly 3% overnight on Wall Street as tech names fell amid rising bond yields.
SINGAPORE — Asia-Pacific stocks looked poised for a lower start on Wednesday following an overnight tumble on Wall Street, with the Nasdaq Composite plunging nearly 3% as bond yields rise.
Futures pointed to a lower open for Japanese stocks, with the Nikkei futures contract in Chicago at 29,650 while its counterpart in Osaka was at 29,530. That compared against the Nikkei 225's last close at 30,183.96.
Shares in Australia also looked poised to decline, with the SPI futures contract at 7,157, against the S&P/ASX 200's last close at 7,275.60.
Investors will watch the 10-year Treasury yield, which crossed the 1.5% mark on Monday and has continued rising since, last sitting at 1.553%. Yields move inversely to prices.
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The rising yields hit tech stocks on Wall Street, with the Nasdaq Composite falling 2.83% to 14,546.68 for its worst day since March. Tech stocks are hit in an environment of rising yields as the rise in rates makes their future cash flows less valuable, and in turn makes the popular stocks appear overvalued.
The S&P 500 declined 2.04% to 4,352.63 while the Dow Jones Industrial Average slipped 569.38 points to 34,299.99.
The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 93.766 following its recent climb from below 93.6.
The Japanese yen traded at 111.55 per dollar, weaker than levels below 111.2 seen against the greenback earlier this week. The Australian dollar was at $0.724 after yesterday drop from above $0.729.
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