Asian markets fell across the board on Wednesday after Wall Street advanced following strong US employment data and rising Treasury yields exacerbating concerns that interest rates will be higher for longer.
The jobs report, known as JOLTS, showed a surprise increase in the number of job openings to 9.6 million, a sign of continued market distress and raising fears of a rate hike by the Federal Reserve before the end of the year.
This report comes ahead of the expected US employment report for September, which will be released on Friday.
Following the JOLTS report, 10-year US Treasury yields rose to levels last seen in 2007.
Treasury yields are viewed as an indicator of US interest rates and are closely watched.
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The three major US indices closed in the red zone, falling by more than one percent.
Stephen Innes of SPI Asset Management said: “Stock market investors have been reeling after US jobs unexpectedly rebounded in August, heightening concerns that the Fed may raise interest rates in November but is undoubtedly keeping costs in check. High borrowing for an extended period.
Tokyo and Seoul, which resumed trade after a long weekend, led the Asian sell-off on Wednesday, each falling about 2%, while shares in Hong Kong, Taipei, Jakarta, Singapore, Sydney and Wellington fell sharply in a sea of red.
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Markets in mainland China were closed for a week-long holiday.
“It is difficult (for investors) to move into bargain hunting as US Treasury yields continue to rise,” said analyst Shotaro Yasuda of Tokai Tokyo Research Institute.
In foreign exchange markets, the yen was trading at 149.28 to the dollar after hitting 150.16 in London on Tuesday, its weakest level in a year.
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Japan’s top financial officials declined to comment on Wednesday on whether Tokyo had intervened to support the yen after it breached the psychological level of 150.
In recent months, the yen has fallen against the dollar partly due to a widening gap in interest rates set by the Bank of Japan and the US Federal Reserve.
Tokyo – Nikkei 225: down 1.9 percent to 30,634.89 (break)
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Hong Kong – Hang Seng Index: down 0.9% to 17,168.94
Shanghai – Boathouse: Closed for holiday
EUR/USD: fell to $1.0461 from $1.0477 on Tuesday
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GBP/USD: fell to $1.2065 from $1.2087
EUR/Pound: rose to 86.71 pence from 86.68 pence
USD/JPY: Decreased to 149.28 yen from 149.86 yen
Brent North Sea crude fell 0.1 percent to $90.87 a barrel
WTI: flat at $89.21 per barrel
New York – Dow Jones: down 1.3% to 33,002.38 (close)
London – FTSE 100 index: down 0.5 percent to 7470.16 (close)
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