Asian stocks down, dollar up

Asian shares continued a global sell-off on Wednesday, while the dollar and Treasury yields rose as traders adjusted their expectations for Federal Reserve’s rate cuts this year, Reuters reported.

Japan’s Nikkei fell 0.7 per cent, after gaining 2.9 per cent in the previous session and surpassing the 38,000 level. The recent rise in the Nikkei partly due to a weakening yen, which fell below 150 per dollar for the first time this year on Tuesday.

In Hong Kong, stocks reversed early losses to trade higher after the Lunar New Year holidays. The Hang Seng Index (.HSI) increased 0.9 per cent. Mainland China’s financial markets remain closed for the week.

MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.3 per cent and was on track for a fifth consecutive day of losses.

According to the global stocks, S&P 500 futures edged 0.06 per cent higher, and Nasdaq futures gained 0.11 per cent. While, EUROSTOXX 50 futures lost 0.23 per cent.

The shift in rate expectations followed a higher-than-expected U.S. inflation report on Tuesday, which showed the consumer price index (CPI) rising 3.1 per cent annually, exceeding forecasts for a 2.9 per cent increase.