Tight China liquidity drags Asian shares; U.S. bond yields jump on stimulus hopes

04.02.2021 - Davydova Maria
Tight China liquidity drags Asian shares; U.S. bond yields jump on stimulus hopes

Asian share markets recorded a subdued performance on Wednesday as tight liquidity conditions in China temporarily restricted buying. However, upbeat corporate earnings, stimulus-driven expectations, and easing retail-related disturbances greatly supported investors’ risk appetite.

MSCI’s broadest index of Asia-Pacific shares outside Japan tallied a 0.2% decline, while Japan’s Nikkei plunged 0.4%. Both indexes reversed courses after recording a three-day winning streak. The series of declines could be attributed to China’s tight liquidity as the country’s short-term interest rates accelerated.

Meanwhile, U.S. bond prices plunged deeper, with the 3-year yield reaching its highest level since March. The decline was mainly from strong economic figures and Washington’s move to legislate a massive stimulus package.

Risk disclaimer "PROMETHEUS LTD – Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Republic of the Marshall Islands MH96960 is a financial services institution outside the European Union Area, which is subject to the supervision of the IFMRRC Certificate 0395 AA V0155 Trading in Forex/ CFDs and Other Derivatives is highly speculative and carries a high level of risk. It is possible to lose all your capital. 70% of trading deals can be unprofitable. These products may not be suitable for everyone and you should ensure that you understand the risks involved. Seek independent advice if necessary. Speculate only with funds that you can afford to lose. This Website may contain information in particular regarding financial services and products that could be regarded b a E.U. supervisory authority as an offer of financial services targeted in Europe. ESMA intervention measures do not apply to customers of PROMETHEUS LTD and it is your responsibility to choose a company which is most suitable for your trading needs. By clicking continue you confirm that you have read, understood and agree to the risk disclosures, terms of service, cash policies, privacy policies and this notice and that you are visiting this website on your own initiative, without any encouragement whatsoever from umarkets.ai or PROMETHEUS LTD." Cookies notification: We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we assume that you are happy with it. Read more. Continue
×

Help with deposit?