Japan's Nikkei 225 falls nearly 2% as Asia-Pacific shares slide after Wall Street tumble


SINGAPORE — Asia-Pacific stocks fell in Wednesday morning trade following an overnight tumble on Wall Street, with the Nasdaq Composite plunging nearly 3% as bond yields rise.

In Japan, the Nikkei 225 slipped 1.83% in early trade while the Topix index dropped 1.91%. South Korea’s Kospi declined 1.77%.

The S&P/ASX 200 in Australia fell 0.32%.

MSCI’s broadest index of Asia-Pacific shares outside Japan traded 0.32% lower.

Investors will watch the 10-year Treasury yield, which crossed the 1.5% mark on Monday and has continued rising since, last sitting at 1.5478%. Yields move inversely to prices.

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The rising yields hit tech stocks on Wall Street, with the Nasdaq Composite falling 2.83% to 14,546.68 for its worst day since March. Tech stocks are hit in an environment of rising yields as the rise in rates makes their future cash flows less valuable, and in turn makes the popular stocks appear overvalued.

The S&P 500 declined 2.04% to 4,352.63 while the Dow Jones Industrial Average slipped 569.38 points to 34,299.99.

Currencies

The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 93.717 following its recent climb from below 93.6.

The Japanese yen traded at 111.53 per dollar, weaker than levels below 111.2 seen against the greenback earlier this week. The Australian dollar was at $0.7242 after yesterday drop from above $0.729.



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