Asian markets fluctuated with meek profits and losses Monday as apprehensions rose on US market issues. The Federal Reserve's policy position and the increase in U.S. Treasury yields have caused Asian traders to worry.
The Nikkei Stock Average of Japan, as well as the S&P/ASX 200 of Australia both jumped 0.1% higher at the end of the morning session.There were minimal changes on the Hang Seng Index of Hong Kong. However, the Shanghai composite saw a 0.3% drop after several changes in position Monday morning. South Korea also fell 0.2%, while Taiex of Taiwan plummeted at 0.3%.
Chief Analyst of CFC Market Ric Spooner said, "Recent weakness in U.S. equity markets appears to have been largely about positioning for the Fed to make a first step in the process of winding back its quantitative easing in September." "Given this market context, traders will focus on ... [Federal Reserve meeting minutes, due Wednesday] for any clearer signs on the probability of a Fed move,"
U.S. stocks ended low on Friday and exhibited the worst weekly performance for 2013. A yield rise was also seen on the 10-year Treasury bond. The rise was the highest level within 2 years and has contributed to the current trend in Asian Markets.
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