Asian Markets Extend Losses Amid Wall Street Sell-Off and Rising Yields
Asian markets struggled on Tuesday as investors digested the previous day's sell-off on Wall Street and rising U.S. Treasury yields. This sentiment was further dampened by sustained high oil prices, which weighed heavily on investor sentiment.
The Reserve Bank of Australia (RBA) hiked its cash rate target by 25 basis points to 4.60%, its fourth hike this year, bringing borrowing costs to a high since 2011. The Australian dollar hovered near multi-month lows around $0.70.
Other key markets in the region also declined, with South Korea's KOSPI falling 0.98% and Japan's Nikkei 225 declining 1.30%. China's CSI 300 index rose 0.04%, while Hong Kong's Hang Seng Index fell 0.89%
Market participants are now focused on upcoming U.S. macro releases, including the PCE inflation reading on Wednesday and non-farm payrolls report on Friday, for guidance on the Federal Reserve's rate trajectory.