Asian shares fell on Wednesday as US yields remained near four-month highs, and a powerful earthquake in Taiwan raised concerns about disruptions to the chip-making industry, as reported by Reuters on Wednesday.
European markets are expected to open subdued, with Wall Street futures also lower as investors await Federal Reserve Chair Jerome Powell’s appearance and US economic data.
In Asia, MSCI’s Asia-Pacific index dropped 0.7 per cent, with Japan’s Nikkei down 0.8 per cent after a strong first-quarter rally.
Taiwan’s shares fell 0.5 per cent following a major earthquake that impacted chipmaker TSMC’s production facilities.
Chinese and Hong Kong markets also declined 0.8 per cent, despite positive service industry data.
On Wall Street, recent economic data has cast doubt on the extent of future Fed rate cuts, with some policymakers suggesting fewer cuts than previously expected.
Tesla shares fell five per cent after a decline in quarterly deliveries, while long-term Treasury yields hit multi-month highs before stabilising. Investors are watching for euro zone inflation data and US private payrolls and services sector reports.
The dollar remained strong against major currencies, while oil prices held near five-month highs on supply concerns. Gold prices continued to rise 0.1 per cent, reaching a new record high.
