Stocks in the Asia-Pacific region rose after a difficult day on Wall Street, where US tech stocks fell on rising inflation expectations.
Hong Kong’s Hang Seng Index rose 2.1 percent on Tuesday, driven by a 3.6 percent gain for HSBC after the Asia-focused lender reported it would resume dividend payments. Australia’s S & P / ASX 200 added 0.8 percent.
In cryptocurrencies, bitcoin continued its decline from recent all-time highs.
China’s CSI 300 index of stocks listed in Shanghai and Shenzhen rallied 0.1% a day after the benchmark index suffered its biggest daily decline in more than six months. The liquidation was due to concerns that the country’s rapid economic recovery from the Covid-19 pandemic could lead to the removal of policy support for asset prices.
Meanwhile, South Korea’s tech-focused Kospi index rose 0.4%. Markets in Japan were closed for a national holiday.
In US trading on Monday, the S&P 500 lost 0.8%, while the technology-focused Nasdaq Composite fell 2.5%. Shares of Facebook, Amazon, Apple, Netflix and Google’s parent Alphabet fell in what some investors suggested was the start of a delayed correction.
S&P 500 futures rose 0.5 percent Tuesday during Asian trading, while London FTSE 100 futures rose 0.3 percent.
A sell-off of US government bonds accelerated on Monday on fear that yields would be eroded by a return to inflation. The 10-year US Treasury yield rose 0.03 percentage points to 1.37%. Bond yields move inversely to prices.
Trading in US Treasuries will not resume until European markets reopen, given the public holiday in Japan.
Investors are also awaiting Federal Reserve Chairman Jay Powell’s testimony before Congressional committees on Wednesday for clues as to whether rising inflation could push the US central bank to reduce its ultra-lax monetary policy.
Traders will get another clue as to whether inflation concerns are justified on Friday, when the US Department of Commerce releases its personal consumer spending price index for January.
“The current reality is that inflation is a risk: Central government bond yields are rising as markets shift prices for 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 has a long way to go before it becomes a problem.”
Bitcoin fell 9.6 percent to $ 49,872 for a single coin on Tuesday after hitting a record high of $ 58,500 the day before. The cryptocurrency continues to rise more than 70 percent this year.
Oil prices continued to rise with Brent crude, the world benchmark, rising 1.8 percent to $ 66.43 a barrel. The US marker West Texas Intermediate was up 1.6 percent at $ 62.71 a barrel.