Asian stocks rise after tech sells to Wall Street

Stocks in the Asia-Pacific region were mostly higher after a tough day on Wall Street, where US tech stocks fell amid rising inflation expectations.

Hong Kong’s Hang Seng Index jumped 1% early in Tuesday, while Australia’s S & P / ASX 200 added 0.6%.

China’s CSI 300 index of shares listed in Shanghai and Shenzhen climbed 0.2% per day after the benchmark suffered its largest one-day decline in more than six months. The sale was prompted by concerns that the country’s rapid economic recovery after the Covid-19 pandemic could lead to the removal of political support for asset prices.

Meanwhile, South Korea’s tech-focused Kospi Index slipped 0.2%.

On Monday, in the United States, the S&P 500 lost 0.8% while the technology-focused Nasdaq Composite fell 2.5%. Shares of Facebook, Amazon, Apple, Netflix, and Google Parent Alphabet all fell in what some investors suggested was the start of a late correction.

Futures on the S&P 500 rose 0.3% on Tuesday in Asian trading, while those on London’s FTSE 100 rose 0.1%.

A liquidation of US government bonds accelerated on Monday, fearing that yields could be eroded by a return in inflation. The 10-year US Treasury yield rose 0.03 percentage points to 1.37%. Bond yields move inversely with prices.

Trading in US Treasuries will not resume until European markets reopen, given the public holiday in Japan.

Investors are also eagerly awaiting testimony from Federal Reserve Chairman Jay Powell before congressional committees on Wednesday whether rising inflation could push the US central bank to cut its ultra-loose monetary policy.

Traders will have another clue as to whether inflation fears are justified on Friday, when the US Department of Commerce releases its personal consumption expenditure price index for January.

“The reality today is that inflation is a risk – yields on core government bonds rise as markets reprogram better future growth,” said Kerry Craig, Global Market Strategist at JPMorgan Asset Management. “But some inflation may not be a bad thing, and the recovery still has a long way to go before it becomes a problem.”

Oil prices continued to climb with Brent, the world benchmark, rising 1.5% to $ 66.24 per barrel. US marker West Texas Intermediate rose 1.4 percent to $ 62.59 a barrel.