Asian stocks rose on Wednesday after U.S. equities rebounded as traders weigh the resilience of the economic recovery to elevated inflation fanned by surging energy costs. Treasury yields advanced and the dollar held a climb.
Shares rose in Japan and South Korea, while Australia was little changed. U.S. contracts fluctuated after bargain-hunting for technology stocks that bore the brunt of a recent selloff boosted the S&P 500 and Nasdaq 100.
India’s SGX Nifty 50 Index futures for October delivery fell 0.1% to 17,802.50, while MSCI Asia Pacific Index shed 0.4%. The NSE Nifty 50 gained 0.7% on Tuesday to 17,822.30.
The 10-year treasury yield headed toward 1.55% and the 30-year yield reached the highest since June. Faster-than-expected U.S. service-sector activity and inflation risks from spiraling costs for crude oil and natural gas are adding to the case for a reduction in Federal Reserve bond-buying. Traders are awaiting labor market data later this week for more clues about the outlook.
Worries about China’s highly-leveraged property sector and broad regulatory crackdown on private industries continue to shadow sentiment. Crude oil extended its rally from a seven-year high. Elsewhere, Bitcoin held a climb past the $51,000 mark.
Back home, Foreign investors bought net Rs 3,230 crore of stocks on Monday, according to NSDL website.