Higher U.S. yields are not good for emerging markets because they lead to outside funds to move away while pressing local currencies. Bond prices dropped over Asia and long-term Japanese yields touched an area not hit since early 2016 a market toughening not warranted by local economic conditions. HSBC economist Kevin Logan said “A simple dynamic is playing out in the global economy right now - the U.S. is booming, while most of the rest of the world slows or even stagnates,” “A Federal Reserve that is raising rates to prevent the U.S. economy from overheating is constraining the policy options of countries where financial conditions are tightening and trade tensions intensifying.”
Now Nikkei eased 0.2 %, as rising yields offset the boost to exporters from a weaker yen.
Russia and Saudi Arabia agreed to rise oil output
Daily Analysis - 04/10/2018
