Asian markets edged down; US dollar extend gains

Asian equity markets were mostly lower on Wednesday, following a weak close in Wall Street on the back of interest rates expectations and concerns about the future of the economy.

In Japan, the Nikkei 225 lost 52.62 points or 0.24 percent to settle at 22,225.50 while the Topix index was down 2.02 points or 0.11 percent to 1,767.73.

Takeda Pharmaceutical was among worst performers of the day, with its stocks falling as much as seven percent as reports said the company rose its acquisition offer for Shire.

Seul’s Kospi benchmark ended 15.33 points, or 0.62 percent lower, at 2,448.81. Australia and New Zealand markets were closed for holidays.

Hong Kong's Hang Seng index eased 0.90 percent to finish at 30,362.00. In mainland China, the Shanghai composite fell 10.93 points, or 0.35 percent, to 3,118, while the Shenzhen Component dropped 0.09 percent to 10,547.10.

Analysts pointed out that the rally of US Treasury led to an increase in market volatility and added pressure in stock markets, not only in the United States.

The 10-year US treasury yield reached 3 percent in the previous session, a level not seen since January 2014. Higher bond yields are interpreted as a vote of confidence in the economy.

The US dollar index, which gauges the greenback against six major competitors, was trading 0.33 percent higher at 90.84 by the time of this writing.

President Donald Trump emphasized that “China’s very serious, and we’re very serious,” adding that Treasury Secretary Steven Mnuchin will be part of delegation travelling to China. “We’ve got a very good chance at making a deal.”

On the data front, the Conference Board said consumer confidence for April came in at 128.7, surpassing expectations for 126.0 and a previous reading of 127.0. New home sales increased 4 percent in March to an annualized rate of 694,000 units. Also above analysts’ forecasts.

Ahead today, the economic front looks empty, so we expect market players to focus on politics and currencies rather than data. The US Energy Information Administration will release its weekly report on crude and refined products inventories as of 14:30 GMT.

FortFS