Asian markets cautious after US volatility | 2018-10-11 |

Asian markets cautious after US volatility

    11 October, 2018 12:00 AM printer

HONG KONG: Asian markets were cautiously higher Wednesday, after a volatile session for US equities and as yields on Treasury bonds retreated from a seven-year peak.

Tokyo edged up, ending a four-day losing run on bargain buying despite the higher yen’s dampening impact, reports AFP.

“After four days of falling… Japanese shares are in a good place for bargain-hunting buys,” Yoshihiro Ito, chief strategist at Okasan Online Securities, said in a commentary.

Hong Kong added 0.1 percent while Shanghai closed 0.2 percent higher, both moving back into positive territory for a second day after Monday’s sell-off.

There were also gains in Mumbai, with markets leaping 1.5 percent after closing at a six-month low on Tuesday, and aviation stocks seeing a boost after domestic media reports that New Delhi may reduce a jet fuel tax.

“(Indian) markets will continue to be volatile in the coming days and will offer great long-term buying opportunities,” Soumen Chatterjee, head of research at Guiness Securities, told Bloomberg News.

There were gains in other Asian markets, with Taiwan up 0.1 percent, Sydney adding 0.1 percent and Bangkok rising 1.1 percent.

But global markets remained cautious on several fronts.

US and European markets meandered on Tuesday, with investors nervous after 10-year US Treasury bond yields surged above 3.0 percent and the IMF sounded a cautious note on the global economy.

On Wall Street, the Dow closed down 0.2 percent at 26,430.57 with US shares facing another day of pressure over higher interest rates.

“Markets continued their tenuous voyage through a pothole-encumbered landscape, dealing with the fragile US-China relations… and Brexit developments providing more ambiguity,” said Stephen Innes, head of Asia-Pacific trading at OANDA.