HONG KONG: Asian markets were cautiously higher Wednesday, after a volatile session for US equities and as yields on Treasury bonds retreated from a seven-year peak.
Tokyo edged up, ending a four-day losing run on bargain buying despite the higher yen’s dampening impact.
“After four days of falling… Japanese shares are in a good place for bargain-hunting buys,” Yoshihiro Ito, chief strategist at Okasan Online Securities, said in a commentary.
Hong Kong added 0.1 percent while Shanghai closed 0.2 percent higher, both moving back into positive territory for a second day after Monday’s sell-off.
There were also gains in Mumbai, with markets leaping 1.5 percent after closing at a six-month low on Tuesday, and aviation stocks seeing a boost after domestic media reports that New Delhi may reduce a jet fuel tax.
“(Indian) markets will continue to be volatile in the coming days and will offer great long-term buying opportunities,” Soumen Chatterjee, head of research at Guiness Securities, told Bloomberg News.
There were gains in other Asian markets, with Taiwan up 0.1 percent, Sydney adding 0.1 percent and Bangkok rising 1.1 percent.
– Eyes on China –
But global markets remained cautious on several fronts.
US and European markets meandered on Tuesday, with investors nervous after 10-year US Treasury bond yields surged above 3.0 percent and the IMF sounded a cautious note on the global economy.
On Wall Street, the Dow closed down 0.2 percent at 26,430.57 with US shares facing another day of pressure over higher interest rates.
“Markets continued their tenuous voyage through a pothole-encumbered landscape, dealing with the fragile US-China relations… and Brexit developments providing more ambiguity,” said Stephen Innes, head of Asia-Pacific trading at OANDA.
“It’s no wonder investors have a high level of misgivings.”
Eyes were fixed on the Chinese yuan amid a backdrop of deepening US-China tensions and a weak yuan, following steps this week from authorities to spur lending in the economy.
Last week the yuan hit a 19-month low, with growing fears the currency was sliding towards the psychological milestone of 7 per dollar — a level not seen since the global financial crisis.
Traders are also waiting for the latest data around new lending and money supply, which will be closely watched as Beijing strives to support flagging growth.
Shares in Chinese internet giant Tencent were down for the ninth straight day, dropping more than 2.6 percent on the back of rumours about a gaming regulatory crackdown — costing the company its place as one of the world’s 10 biggest companies.
In London, the FSTE 100 dipped 0.2 percent in early trade to its lowest in six months. —AFP