Asian stocks skidded to onemonth lows on Friday as rising U.S. Treasury yields again rattled equity investors while hoisting the dollar to a threemonth high, which in turn dragged the Japanese yen.
Energy markets were not spared the volatility either, with oil prices adding to big gains overnight after the Organization of Petroleum Exporting Countries OPEC and its allies agreed to mostly maintain their supply cuts in April as they await a more solid recovery in demand from the coronavirus pandemic. OR
Australian stocks shed more than 1, Japans Nikkei share average dropped 1.6 and shares in Seoul fell 1.4. Chinese shares were in the red with the bluechip CSI300 index off 1.5.
That sent MSCIs broadest index of AsiaPacific shares outside of Japan to 684.52, the lowest since Feb. 1.
EMini SP futures were 0.5 lower.
U.S. stocks dropped on Thursday after Federal Reserve Chair Jerome Powell disappointed some investors by not indicating that the Fed might step up purchases of longterm bonds to hold down longerterm interest rates.
The techheavy Nasdaq Composite tumbled 2.1, taking it down about 10 from its record close on Feb. 12 and putting it in correction territory.
Even though Powell made it clear that the Fed was not close to changing its ultraloose monetary policy stance anytime soon, some analysts still worried rising Treasury yields could herald higher borrowing costs, thereby limiting the fragile U.S. economic recovery.
The market was seemingly looking for Powell…