The yen fell ti its lowest level in five months against the U.S. dollar,trading down 0.8% at 107.49. Much of the yen downturn followed the election results and the dollar's increased strength against several currencies. Monday, the yield on 30-year Treasurys rose above 3% in Asian trading hours for the first time since January. Investors are reasoning that Mr. Trump’s plans to spend more on areas such as infrastructure could spark higher inflation, leading the Fed to raise interest rates sooner than expected.
As U.S. bonds have become more attractive, money that had flowed into emerging markets this year has gone into reverse, pushing up the dollar’s value and raising yields on Asian government debt. Bond yields rise as their prices fall.
For now, rising U.S. bond yields are outweighing investors’ positive thoughts about Asian economies. Beside Monday’s strong GDP numbers from Japan, Malaysia last week reported better-than-expected third-quarter growth, rising to 4.3% from 4% in the previous quarter.
The selloff “appears to have been driven by a general rise in investor risk aversion,the Wall Street Journal reported. In other markets, the ASX 200 was off -0.36%; the Shanghai Composite dropped slightly, -0.15%; the Kospi -0.0-8% while the Hang Send was up 0.46%.
Gold traded up 0.45 percent at $1,225.45 an ounce. In the U.S. on Monday, gold prices fell to a five-month low of $1,211.08 an ounce, pressured by a stronger dollar and expectations that the Federal Reserve would raise interest rates in December. Oil prices gained ground during Asian trade; U.S. crude futures added 2.03 percent, at $44.20 after settling at $43.32 a barrel, while Brent futures at $45.21, up 1.76 percent from its settlement price at $44.43. Tuesday the Reserve Bank of Australia
held rates steady as she goes at their all-time low of 1.5%. It was some decreed a bet that inflation was on its way back.
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