Asian stocks were mixed Tuesday after a jump in Treasury yields and the dollar as Jerome Powell’s renomination to head the Federal Reserve fueled bets on a quicker withdrawal of monetary stimulus.
A Hong Kong gauge of Chinese technology stocks dropped amid speculation over stiffer regulations, while an iron-ore rebound bolstered commodity-reliant Australia. U.S. equity futures wavered and European contracts dipped.
A final-hour Wall Street tech selloff left U.S. shares in the red. Treasuries slid in U.S. hours. Markets are pricing in a full quarter-point rate hike into the June Fed meeting and seeing a good chance of a second by September and a third by December to fight price pressures.
Powell said the Fed would use its tools to support the economy and labor market and prevent higher inflation from becoming entrenched. Treasury futures edged lower. Cash Treasuries won’t trade in Asia due to a holiday in Japan. The dollar was around the highest since September 2020, while the yen fell past 115 per dollar for the first time since March 2017.
