17 May 2022, Australia, Sydney: The Sydney skyline with the famous Opera House. Photo: Carola Frentzen/dpa (Photo by Carola Frentzen/picture alliance via Getty Images)
Carola Frentzen | Picture Alliance | Getty Images
Asia-Pacific markets were mixed on Friday as rising bond yields continue to put pressure on equities in the wake of the U.S. credit downgrade.
IG market analyst Tony Sycamore noted the yield on the U.S. 30 year bond rose by 14 basis points overnight to 4.30%, taking the yield towards its October 2022 4.42% high.
“The move higher in long end yields is being driven by lumpy bond issuance, resilient data and Fitch’s downgrade earlier in the week,” Sycamore said.
In Asia, investors will look to the Reserve Bank of Australia’s monetary policy statement, which will detail the central bank’s rationale after it unexpectedly held rates at 4.1% on Tuesday. The S&P/ASX 200 rose marginally.
Japan’s Nikkei 225 was up marginally, while the Topix was also trading close to the flatline.
South Korea’s Kospi rose 0.26% and the Kosdaq climbed 0.19%.
Hong Kong’s Hang Seng index popped 1.8% on its open, while mainland markets were more mixed. The Shanghai Composite slid marginally while the Shenzhen Component was up 0.85%