Japan’s Nikkei 225 rose 1.2 percent to 66,271.28 as of midday. South Korea’s KOSPI edged up 0.1 percent, while the Shanghai Composite gained 0.3 percent to 3,842.30. Hong Kong’s Hang Seng Index fell 0.25 percent to 24,463.22.
The subdued regional performance followed overnight losses on Wall Street. The Dow Jones Industrial Average fell 0.26 percent, the S&P 500 slipped 0.17 percent and the Nasdaq Composite shed 0.08 percent.
The U.S. 30-year Treasury yield touched 5.6206 percent, its highest since June 2002, while the benchmark 10-year yield reached 5.293 percent, the highest since June 2007. Rising energy costs have fueled inflation concerns and expectations of further Federal Reserve tightening.
In Seoul, foreign investors sold a net 385.6 billion won ($285 million) of KOSPI shares and institutions offloaded another 349.2 billion won. The junior KOSDAQ outperformed the main board, rising 1 percent to 858.93.
Chip heavyweights diverged. SK hynix rebounded 1.1 percent to 1,785,000 won, while Samsung Electronics fell 0.8 percent.
The auto sector lost 0.95 percent following weak industrial activity data. Hyundai Motor declined 0.9 percent to 347,000 won.
Data released Wednesday showed automobile production plunged 24.8 percent in August from July, helping drive a 4.8 percent decline in mining and manufacturing output.
Semiconductor production fell 2.2 percent. Officials attributed part of the automobile slump to summer factory holidays being concentrated in August.
South Korean government bonds rallied after authorities signaled interventionist measures to contain the rise in market yields.
The two-year government bond yield slipped below 4 percent, while the 10-year yield fell 4.8 basis points to 4.422 percent. Bond prices move inversely to yields.
Deputy Prime Minister and Finance Minister Lee Hyoung-il said Wednesday that the government would deploy emergency bond buybacks and reduce issuance using part of its excess tax revenue if needed to stabilize the market.
The government expects tax receipts to exceed its supplementary-budget forecast by 63.2 trillion won this year, giving it room to reduce borrowing. Buybacks would retire outstanding debt before maturity, while smaller new offerings would ease the supply burden on investors.
The won was little changed at 1,353.7 per dollar.
AJP takeaways
- Japan leads: The Nikkei gained 1.2 percent as Seoul and Shanghai eked out modest gains amid rising U.S. bond yields.
- Korean bonds rebound: Yields retreated after Seoul signaled emergency buybacks and reduced issuance funded by excess tax revenue.
- Domestic weakness weighs: Auto shares fell as August data showed simultaneous declines in production, consumption and investment.
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