Asian stocks track US drop on tech, inflation risk
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Stocks in Asia followed US peers lower after a selloff in Treasuries deepened on bets the Federal Reserve won’t cut interest rates again before July due to inflation risks. Equities opened lower in Sydney and Tokyo, sending a regional gauge lower. A drop in Big Tech weighed on US trading, with Nvidia Corp. sinking more than 6% as a product presentation left investors wanting more. US contracts were steady after the S&P 500 fell more than 1% following a report on US service providers that showed a price gauge at the highest since early 2023. Treasuries were little changed after falling across the curve in the previous session. A $39 billion sale of 10-year bonds drew the highest yield since 2007. “Rising yields are not necessarily an issue for stocks unless, of course, the economy starts to fail. Then all bets are off,” said Kenny Polcari at SlateStone Wealth. “But rising yields will be an issue if inflation rears its ugly head.” Trade...