Asian markets extend losses

Asia-Pacific markets extended losses on Thursday, mirroring Wall Street’s declines ahead of key regional economic data releases on Friday. Japan’s Nikkei 225 fell 1.6%, and the Topix index dropped 0.8%. South Korea’s Kospi shed 0.72%, while the Kosdaq slipped 0.3%. Both Japan and South Korea are set to release industrial production figures, while China will publish its official May purchasing managers index. Additionally, Tokyo’s inflation data will be revealed.

Hong Kong’s Hang Seng index and mainland China’s CSI 300 index hovered near the flatline.

Overnight in the U.S., major indexes fell under pressure from rising Treasury yields. The 10-year Treasury note yield rose for the second consecutive day, trading above 4.6%. Higher yields can reduce stock valuations, increase borrowing costs, curb consumer spending, and enhance the appeal of T-bills and money market funds. The Dow Jones Industrial Average fell 1.06%, the S&P 500 dipped 0.74%, and the Nasdaq Composite slipped 0.58%, with Nvidia mitigating further tech sector losses.