US Treasuries rose, halting a four-day selloff that had been driven by concerns over sticky inflation that may be exacerbated by President-elect Donald Trump’s plans for fiscal stimulus. Japanese government bonds also edged higher after a 30-year auction received the strongest demand since 2020.
Asian stocks fell for a second day and a gauge of emerging market equities was headed for a correction as Trump’s threat of additional trade tariffs unsettled investors.
Japanese and Australian equities led the weakness in the region, while US futures also slipped. Chinese shares on the mainland and in Hong Kong fluctuated, following data that showed deflationary pressures worsened in the world’s No. 2 economy.
A regional gauge of semiconductor stocks was marginally lower, following news that the Biden administration is planning an additional round of export restrictions on artificial intelligence chips.
Nvidia Corp. dipped in post-market trading after the report. A gloomy outlook for China’s economy is adding pressure on regional markets as the latest inflation readings suggest that Beijing’s stimulus efforts have so far failed to revive demand.
