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        Asian Stocks Affected by American Economic Recession Fears


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Asian stock markets slipped Wednesday, reversing their slight gains last day as investors tried to cope with the big turnaround in the U.S. bond market and what it meant for the U.S. economy.
The MSCI Mingsheng Asia-Pacific (excluding Japan) index fell 0.1%, while the Nikkei index. N225 fell 0.6%.
China's stock market rebounded against the trend, with the Shanghai Composite Index. SSEC rebounding 0.6%, the Shanghai and Shenzhen 300 Index. CSI300 climbing 1.1%, and the Hong Kong Hang Seng Index. HSI rising 0.5%.
Major U.S. stock markets rose steadily on Tuesday, but closed below midday highs, reflecting concerns about the economic outlook.
The Standard & Poor's 500 Index. SPX closed up 0.72% and the Nasdaq Index. IXIC closed up 0.71%.
The yield of the benchmark 10-year Treasury bond rose to 2.432% from its 15-month low of 2.377% on Monday, but the yield curve was still upside down. The yield of the three-month Treasury bond was 2.461%, higher than that of the 10-year Treasury bond.
Many investors are worried about the upside-down of the yield curve, which has occurred before every recession in the past 50 years. This led to a sharp drop in global stock markets in the latter part of last week and investors flocked to buy longer-term U.S. government bonds.
"Although the market has now shaken off this extreme tension over the yield curve, it is undeniable that recent data in the United States has been weak and thus has hardly eliminated concerns about the economic outlook," said Hirokazu Kabeya, head of global strategy at Daiwa Securities.
The first glimmer of bulls in the stock market is that in the past, after the yield curve went upside down, the U.S. economy usually had months to fall into recession.


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