Asian Equities Fall; BOK Hints at Possible Rate Hike
Investing.com - Asian equities fell in morning trade on Thursday as the yield on the United States 10-Year Treasuries rose to the highest level since 2011. South Korea’s KOSPI slid 1.6% after Bank of Korea Governor Lee Ju-yeol hinted at a possible policy rate hike later in October.
The jump in treasury yield came after data from ADP and Moody’s Analytics revealed better-than-expected U.S. services and private payrolls increased by 230,000 in September, comparing to a number of 185,000 jobs expected by economists.
In Asia, China’s stock markets remained closed for a week-long holiday. Hong Kong’s Hang Seng Index extended losses and fell 1.8% by 10:53PM ET (02:53 GMT).
Japan’s Nikkei 225 slipped 0.3%. Toyota Motor Corp (T:7203) and Softbank Corp. (T:9984) were in focus as Reuters reported the two companies are set to announce a partnership on automated driving and other related technology.
In a joint statement, the two companies said they will hold a joint news conference later in the day.
Down under, Australia’s S&P/ASX 200 outperformed its regional peers and rose 0.6%. A report from Pacific Investment Management warned that the country’s housing slump raised the possibility of debt downgrades for local big banks.
“We have grown more cautious with the external credits of Australian banks,’’ Pimco analysts and portfolio managers led by Taosha Wang said in a note to clients. “The probability of a market-moving agency downgrade that causes major banks to lose their AA- rating for the first time in history is now higher than before.’’
Elsewhere, the Reserve Bank of India said in a statement that it is easing norms for state-run refiners including Indian Oil Corp., Bharat Petroleum Corp. and Hindustan Petroleum Corp. to borrow money from overseas markets in a bid to support the rupee. The central bank removed a $750-million cap each on those companies, according to the statement.
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