Shares in Asia traded lower Thursday morning after the main yield curve in U.S. Treasurys inverted overnight, triggering fears over the state of the U.S. economy.
The MSCI Asia ex-Japan index shed 0.34% overall.
Investors will be watching the bond market today, after the yield on the benchmark 10-year Treasury note briefly broke below the 2-year rate overnight, an odd bond market phenomenon that has historically been a reliable indicator of economic recessions. The yield on the 30-year Treasury bond was also sent to a new record low on Wednesday.
The yield on the 10-year Treasury note was last at 1.5843%, as compared to the 2-year rate at 1.5812%.
Markets in South Korea and India are closed on Thursday for holidays.
Bank shares decline
Currencies and oil
The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 97.949 after surging from levels below 97.8 yesterday.
The Japanese yen, widely viewed as a safe-haven currency, traded at 105.89 against the dollar after strengthening sharply from levels above 106.5 in the previous session. The Australian dollar changed hands at $0.6754 after dropping from levels above $0.676 yesterday.
Oil prices slipped in the morning of Asian trading hours after seeing sharp losses on Wednesday. International benchmark Brent crude futures declined 0.69% to $59.07 per barrel, while U.S. crude futures shed 0.53% to $54.94 per barrel.
Here’s a look at some of the data due today:
- Australia: Employment data for July at 9:30 a.m. HK/SIN
- China: Residential building sales for July at 9:30 a.m. HK/SIN
- Hong Kong earnings: Ping An Group, Vanke
— CNBC’s Yun Li contributed to this report.