Asian Shares Decline As Yields Rise On Rate Uncertainty

(RTTNews) - Asian stocks retreated on Wednesday as an uptick in Treasury yields amid fading optimism about early rate cuts triggered a selloff in technology stocks.

Traders awaited the latest Fed minutes along with U.S. labor market data this week for important clues on the economic and rate outlook.

The dollar mostly held on to its gains and gold ticked higher, while oil prices steadied after sharp moves earlier in the week following attacks on vessels in the Red Sea by Houthi rebels.

Japanese markets remained closed for a holiday. Chinese stocks ended a choppy session slightly higher after the government ousted a top official in charge of regulating the country's gaming industry.

The benchmark Shanghai Composite index inched up 0.17 percent to 2,967.25 while Hong Kong's Hang Seng index fell 0.85 percent, to 16,646.41 on concerns about China's economic recovery and U.S. monetary policy uncertainty.

Seoul stocks tumbled as rate uncertainty gripped markets ahead of the FOMC meeting minutes release. The Kospi average fell 2.34 percent to 2,607.31, snapping a four-day winning streak.

Market bellwether Samsung Electronics lost 3.3 percent and No. 2 chipmaker SK Hynix slumped 3.9 percent. Battery makers LG Energy Solution and Samsung SDI declined 3-4 percent.

Australian markets fell sharply in their worst session since mid-October, dragged down by banks and miners.

The benchmark S&P ASX 200 fell 1.37 percent to 7,523.30 while the broader All Ordinaries index settled 1.40 percent lower at 7,757.30.

Fortescue Metals Group dropped 1.9 percent after confirming the derailment of multiple ore cars in Western Australia.

Across the Tasman, New Zealand's benchmark S&P NZX-50 index ended down 0.34 percent at 11,730.13.

In New Zealand, the benchmark S&P/NZX 50 index closed 0.34 percent lower at 11,730.13, breaking a five-day winning streak.

U.S. stocks ended lower overnight to extend the pullback seen in the final trading session of 2023 as Barclays downgraded Apple stock to underweight and yields ticked higher from multi-month lows on waning rate cut optimism.

The tech-heavy Nasdaq Composite tumbled 1.6 percent and the S&P 500 gave up 0.6 percent while the Dow finished marginally higher after a choppy session.