Asia's stock markets under pressure: Rising bond yields and inflation concerns are weighing on investors

Singapore. Rising global bond yields and high oil prices have the stock markets in the Far East under control. After price losses on Wall Street, the Nikkei index closed on Tuesday 0.6 percent weaker at 65,481 points.

In doing so, he limited losses of up to almost two percent. "It's fair to say that inflation concerns and the resulting rise in interest rates are weighing on the stock market," said Wataru Akiyama, strategist at Nomura Securities. In addition, there is an increasing assessment of AI stocks, which have recently driven the market, that they are overvalued given rising interest rates.

The 10-year U.S. Treasury yield rose to a 19-year high of over 5.27 percent overnight. Investors fear that the US Federal Reserve will raise interest rates three more times by the middle of next year in order to get inflation under control. Japanese government bond yields were also near their highest levels in decades. “We are entering a new environment,” said Angus Hui, an expert at Fullerton Fund Management in Singapore. “We think bond yields are unlikely to return to the good old days when they were very, very low.”