At the start of Tuesday trading, Japanese equities were lifted by a weaker yen following the dollar’s continued gains while investors were predominantly focused on the U.S. Treasury market, wherein the 10-year yield treasury was a tad shy from the 3 percent mark.
The dollar prolonged its gains, with the 10-year treasury yield maintaining its level just under the 3 percent mark, the highest level since the year 2014. As the yen fell, equities in Japan rose. Stocks edged higher in Australia as well as in South Korea, in spite of SK Hynix Inc.’s prolonged pattern which is seen from a collection of semiconductors manufacturers wherein earnings have disappointed investors.
Meanwhile, aluminum prices dropped after the United States softened its stand on sanctions on Russia’s United Co. Rusal.
JPMorgan Asset Management Global market strategist Kerry Craig stated in an Bloomberg TV interview that the overall healthy global economy should reaffirm interests.
Investors are doubting the implications of the ever-increasing bond yields that were partly boosted by higher commodity prices and worries regarding the inflationary effect on a broader economy.
Interest rates market volatility still remains low while equity volatility is nowhere near the highs from early 2018, signaling that investors are believing that increasing borrowing costs may not be adequate to hinder additional stock gains for now.
Meanwhile in the tech sector, technology still remains weighed on with the Philadelphia Semiconductor index falling over 7 percent over the past couple of days. Marking yet another weak earnings report is the European manufacturer ams AG, with continued slides after a collection of earlier disappointing activities.