8th March 2021


Asian stocks fell as tech struggles

Asian stocks fell this Monday with U.S. equity futures, as higher Treasury yields dampened optimism about President Joe Biden's $ 1.9 trillion pandemic relief plan and the growth prospects. Crude oil leaped.

Tech stocks struggled as China and Hong Kong led the regional retreat. Nasdaq 100 futures underperformed, while European contracts rose. Ten-year Treasury yields remain concentrated, rising. US stocks rose on Friday and the 10-year yield touched 1.6% after labor data beat estimates.

Oil soared after Saudi Arabia said the world's largest crude terminal was attacked, although production did not appear to be affected. Consequently, the US spending plan moves to the House following the passage of the legislation by the Senate. Advances on the bill and strong data on Chinese exports bolstered the economic outlook.

Inflation risks and higher long-term borrowing costs are raising questions about equity valuations, especially for high-growth tech stocks. Treasury yields are rising with a stronger economic outlook, Federal Reserve officials said on Friday, downplaying the need for a monetary policy response.

"You'll see a lot of volatility in the markets," Kim Stafford, Asia Pacific’s director for Pacific Investment Management Co., said. “We believe that confidence is improving, especially with vaccines that are online, so we will see a rebound in growth globally. There are many reasons to be confident in the market, but many of them also come at a price. "