Stocks Drop, Treasuries Climb Amid Mideast Tension: Markets Wrap

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US equity futures fell in early Asian trading as risk sentiment turned, weighing on the region’s equities. Oil prices resumed a selloff and investors retreated to the dollar. Contracts for the S&P 500 fell more than 1% Friday, placing the US benchmark on track for a sixth consecutive decline should the underlying index end Friday lower. Japanese stocks fell around 2%, while those in Australia and South Korea dropped more than 1%. Treasury yields fell, with the 10-year’s nearing 4.5%. The yen was slightly firmer against the greenback. US-listed shares of Taiwan Semiconductor Manufacturing Co. dropped 4.9% after the company revised down the revenue growth outlook for the semiconductor industry. New York Fed President John Williams said while it’s “not” his baseline expectation to hike interest rates, it’s possible — if warranted. His Atlanta counterpart Raphael Bostic said he doesn’t think it will be appropriate to ease until toward the end of 2024. The market’s biggest worry right now is inflation, which is re-accelerating and throwing cold water on the idea of any rate cuts in 2024. Most emerging market currencies fell on Thursday, with the Mexican peso among the laggards as rising volatility derails carry trade positions that has propelled the currency higher for the past few months. Gold advanced amid growing political risks and demand from central banks and Chinese consumers. Israel received its first-ever sovereign downgrade as S&P Global Ratings lowered its credit rating to A+ from AA- on heightened geopolitical risks for the region.

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https://finance.yahoo.com/news/asian-stocks-set-drop-hawkish-221827457.html