Asian markets followed in the footsteps of losses in the US, underpinned by rising yields on bonds. Japanese Nikkei 225 fell 0.5% and South Korean Kospi wiped 0.24% of its value. The Australian ASX 200 reported a decline of 1.07%, after all sub-indices posted declines.
In Hong Kong Hang Seng wrote off 0.36 percent and the Chinese mainland market Shanghai Composite erased 0.22%, and Shenzhen Composite wrote off 0.084% of its value.
“The Hang Seng Index has breached the 25,600 level. I think it has potential to seek even lower levels in the near term,” said Linus Yip, chief strategist for First Shanghai Securities. “Global central banks have shown intentions to tighten monetary policy. Geopolitical risks also seem to be on the rise. These are risk factors to the market.”
Movements in bond markets were in focus after US markets as the yield on government securities reported gains.
Oil prices fell as futures varieties Brent fell 1.25 percent to 47.51 dollars a barrel, while those on US light crude dropped its price by 1.27% to 44.94 dollars per barrel.
Energy companies in Australia followed declines in the price of black gold. Australian Santos reported a decline in the price with 2.15%, while shares of Oil Search fell 2.5%.
In South Korea, shares of Samsung Electronics dropped its price by 0.12% after the electronics giant said it expects profit in the second quarter to increase by 72% yoy.
On the currency market the euro fell by traded for 1.1412 dollars this morning Miscellaneous compared with levels of 1.13 dollars earlier in the week.
The dollar index is traded at a level of 95.924 points at 7 am local time, and remained below the levels of about 96 points, which is retained in the greater part of the week.
On Friday, investors were eyeing China’s reported on its foreign exchange reserves.
“Asian stocks, especially Hong Kong names, have always had a close correlation to US stock action,” said Brett McGonegal, chairman and chief executive of Capital Link Investment Holdings. “Given the US market is being driven by a handful of tech names, it makes perfect sense that the correlation is now largely driven by this group.”
“The correlation is a direct example of just how intertwined global markets have become. This close relationship among global markets has always been led by US stocks.”
