Search ForexCrunch
  • Asian shares remain on the back foot amid stronger US Treasury yields.
  • Pacific markets seem to benefit from China PMI.
  • US President Biden’s infrastructure plan is in the spotlight.

Asian equities bear the heat of the US bond rout during early Wednesday. As a result, the MSCI’s index of Asia-Pacific shares outside Japan drops 0.45% intraday but is poised for the first monthly loss since October. Additionally, Japan’s Nikkei 225 fails to cheer upbeat Industrial Production and hopes of strong economic growth while flashing 0.86% intraday loss ahead of the European session.

Chinese indices also followed the tunes of Japan as losses stay on the table despite upbeat NBS PMI data. The reason could be traced from the Western tussles with Beijing. Recently, the US expressed dislike for China’s role in Hong Kong politics while the UK stays ready to push global leaders “to get tough” on the dragon nation.

South Korea’s KOSPI couldn’t welcome better-than-forecast Industrial and Service Sector Output figures while Hong Kong’s Hang Seng tracks China’s losses and risk-off mood.

Australia’s ASX 200 and New Zealand’s NZX 50 buck the trend amid hopes of economic recovery and Western support but India’s BSE Sensex couldn’t have that immunity and marks 0.88% intraday losses by the press time.

US 10-year Treasury yield stays firmer around the highest since January 2020 and the US dollar index (DXY) pokes November 2020 levels as traders hope pleasing details from American President Joe Biden’s infrastructure plan. Also portraying the mood could be S&P 500 Futures that marks a three-day losing streak.

Looking forward, US President Biden and ADP Employment Change will be the key to watch. However, geopolitical tension surrounding should also not be missed.

Read:  ADP Private Payrolls March Preview: Consumers look to an early spring?