Asian stocks tumbled on Thursday, extending losses from the previous session, as investors awaited key inflation data from the United States for clues on the future path of global interest rates, Reuters reported. MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.5 per cent, tracking Wall Street's decline and adding to its 1.6 per cent drop from Wednesday. Japan's Nikkei fared worse, tumbling more than 1.5 per cent. US and European futures also pointed lower, with EUROSTOXX 50 futures easing 0.18 per cent, S&P 500 futures dipping 0.35 per cent, and Nasdaq futures slumping 0.45 per cent. US Treasury yields remained high on Thursday, partly due to a weak debt auction. The benchmark 10-year yield stood at 4.6197 per cent, while the two-year yield held steady at 4.9830 per cent. Japanese government bond (JGB) yields also hit fresh multi-year highs on growing expectations of imminent rate hikes from the Bank of Japan. The 10-year JGB yield peaked at 1.1 per cent in early Asian trade, its highest since July 2011. In equities, Chinese blue chips edged down 0.25 per cent, following their regional peers despite an upgrade to China's 2024 and 2025 GDP growth forecasts by the IMF. Hong Kong's Hang Seng Index managed a modest gain of 0.17 per cent. The US dollar strengthened, pushing the euro to a two-week low of $1.07955. The yen also weakened, trading at 157.43 per dollar after hitting a four-week low in the previous session. The Australian dollar, however, gained slightly to $0.6617 after data showed domestic inflation unexpectedly rose to a five-month high in April. Oil prices rose slightly after a drop on concerns about weak US gasoline demand and higher interest rates. Brent crude was at $83.60 per barrel, while US crude rose to $79.25. While, gold prices fell to $2,334.15 an ounce.
