Asian Stocks Rebound as Oil Concerns Ease Ahead of US Inflation Data
Asian stocks rebounded on Wednesday after three sessions of decline, as easing oil-market concerns helped temper a bond selloff ahead of crucial US inflation data. The MSCI Asia Pacific Index rose 0.4%, led by technology companies following a key gauge of US semiconductor shares increase.
Bonds remained under focus after yields on the longest-dated Treasuries hit their highest since 2002 in New York trading, but steadied in early Asian markets. Oil prices and US-Iran tensions remain key sources of uncertainty, with markets seeking clearer signs of progress in negotiations.
According to Arjun Vij, a portfolio manager at JPMorgan Asset Management, the sell-off in bonds could stop due to a quick resolution of the US-Iran conflict or lower earnings and forward guidance. Traders are ramping up bets that Treasury yields will keep climbing from their current roughly two-decade highs, increasing the risk of an abrupt unwind of those positions on any sign of economic cooling.