TOKYO (Reuters) – Asian shares slipped on Wednesday, giving up small gains made the previous day as investors tried to come to terms with a sharp shift in U.S. bond markets and the implications for the world’s top economy.
MSCI’s broadest index of Asia-Pacific shares outside Japan eased 0.1 percent while Japan’s Nikkei average lost 0.6 percent.
Stocks - Trend - Benchmark - Shanghai - Composite
Chinese stocks bucked the trend, with the benchmark Shanghai Composite rebounding 0.6 percent, the blue-chip CSI 300 climbing 1.1 percent, and Hong Kong’s Hang Seng advancing 0.5 percent.
Wall Street’s main indexes tallied solid gains on Tuesday but finished below their session highs in a reflection of the underlying concerns about the economic outlook.
S - P - Percent - Nasdaq - Composite
The S&P 500 gained 0.72 percent while the Nasdaq Composite added 0.71 percent.
The 10-year U.S. Treasuries yield inched to as high as 2.432 percent from Monday’s 15-month low of 2.377 percent, though the yield curve remained inverted, with three-month bills yielding 2.461 percent, more than 10-year bonds.
Inversion - Investors - Phenomenon - US - Recession
The inversion spooked many investors as this phenomenon has preceded every U.S. recession over the past 50 years, triggering a dramatic selloff in stock markets globally late last week and a stampede into longer-dated U.S. government debt.
“While the markets now got out of the extreme nervousness about the U.S. yield curve, there is no denying that U.S. data has been soft of late, hardly dispelling worries about the outlook,” said Hirokazu Kabeya, chief global strategist at Daiwa Securities.
Silver - Lining - Stock - Bulls - Past
The silver lining for stock bulls is that in the past, it has usually taken many months before the United States slipped into recession after the curve was first inverted.
Yet the signs from a raft of economic data, including a set of indicators on Tuesday, weren’t encouraging.
Home - Building - February - Construction - Homes
Home building fell more than expected in February as construction of single-family homes dropped to near a two-year low while the consumer confidence index...
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