Major Asian stock indices declined on Monday amid broader global risk aversion, with Japan’s Nikkei 225 falling 1.8% and Hong Kong’s Hang Seng dropping 2.3%. Treasury yields remained stable, signaling cautious investor sentiment.
- Nikkei 225 down 1.8% to 39,467.80
- Hang Seng Index fell 2.3% to 22,874.50
- Kospi declined 1.4% to 2,745.31
- U.S. 10-year Treasury yield unchanged at 4.32%
- S&P 500 dropped 1.6% following strong U.S. retail sales data
- Australian dollar weakens 0.7% against USD
Asian equity markets opened lower on Monday, mirroring a sharp reversal in U.S. stocks that ended the previous session with losses. The Nikkei 225 fell 1.8% to close at 39,467.80, while South Korea’s Kospi dropped 1.4% to 2,745.31. Hong Kong’s Hang Seng index slid 2.3%, finishing at 22,874.50, pressured by a broad retreat in technology and financial sectors. The downturn followed a volatile trading session in New York, where the S&P 500 shed 1.6% and the Nasdaq Composite lost 2.1% amid rising concerns over elevated U.S. Treasury yields. Despite the equity selloff, benchmark 10-year U.S. Treasury yields held steady at 4.32%, suggesting that bond markets were not reacting to the same risk factors driving equities. Market participants pointed to mixed macroeconomic signals as a key driver of volatility. Data released earlier in the week showed U.S. retail sales rose 0.5% in December, surpassing expectations, while inflation pressures remained persistent, with core PCE prices up 2.8% year-on-year. These figures fueled speculation about potential delays in Federal Reserve rate cuts, contributing to investor unease. The divergence between equity and bond performance underscored shifting risk dynamics across asset classes. In Asia, investors focused on domestic catalysts, including slower-than-expected manufacturing output in China and weaker-than-projected export data from Taiwan. Meanwhile, the Australian dollar weakened 0.7% against the U.S. dollar, reflecting ongoing regional uncertainty.