Asian shares decline as bond yields surge
Asian share markets were seen subdued on Tuesday, performing weakly as an increase in U.S. bond yields dragged tech-related shares and affected company valuations in China and South Korea. Moreover, investors’ sentiment was dampened by inflation fears as the United States prepares to legislate a $1.9 trillion stimulus package.
MSCI’s broadest index of Asia-Pacific shares outside Japan recorded a 0.79% decline, while South Korea’s Kospi dropped 1.88% to tally four consecutive sessions of losses. Japan’s benchmark index Nikkei salvaged early losses to trade 0.24% higher.
While U.S. Treasury Secretary Janet Yellen assured that President Joe Biden’s stimulus package would be adequate to fuel a “very strong” rebound, investors remained cautious as this would heightened inflation risks.