Asia-Pacific markets fell on Thursday, following declines on Wall Street as investors grew concerned about the U.S. budget bill potentially adding to the country’s debt. Japan’s Nikkei 225 fell 0.84%, South Korea’s Kospi slipped 1.22%, and Australia’s S&P/ASX 200 fell 0.45%. Hong Kong’s Hang Seng Index slipped 1.19%, while mainland China’s CSI 300 fell 0.06%.
U.S. stocks ended lower on Wednesday, pressured by a surge in Treasury yields. The Dow Jones Industrial Average lost 1.91%, the S&P 500 shed 1.61%, and the Nasdaq Composite slid 1.41%. The 10-year U.S. Treasury bond yield touched the highest level since October 2023 at 5.09%.
In other news, Bitcoin hit a new record high above $111,000 on Thursday, driven by positive momentum, growing optimism around U.S. crypto regulation, and continued interest from institutional buyers. Singtel’s two new data centers in Singapore and Thailand are expected to improve the telco’s revenue once they come online later this year and early next year.
Asia-Pacific markets decline alongside Wall Street
Singtel’s Group CEO Yuen Kuan Moon mentioned a 2% revenue growth at the group level, due to contributions from Optus and Trustwave. Iqbal Khan, co-president of UBS Global Wealth Management, emphasized the importance of diversification in navigating the volatile global market. He advised considering multiple regions, sectors, and currencies to stay diversified.
Chinese electric-vehicle maker Xpeng saw its shares in Hong Kong rise over 10% on Thursday following upbeat earnings and a stronger-than-expected revenue forecast for the second quarter. Xpeng’s first-quarter revenue more than doubled year-over-year, driven by robust sales. Japan’s Finance Minister Katsunobu Kato labeled U.S. tariffs as “regrettable” during the Group of Seven meeting in Canada.
Both sides agreed that the dollar-yen exchange rate should be market-determined and that the current level reflects fundamentals. Emerging markets stocks are gaining attention as the “sell U.S.” narrative strengthens, following Moody’s recent downgrade of the U.S. credit rating. The Bank of America and JPMorgan have upgraded their outlook on emerging market equities, citing factors like a weaker U.S. dollar, a potential top in U.S. bond yields, and economic recovery in China.
