Asia stocks opened mostly in positive territory on Wednesday even as global growth concerns and weak US economic data weighed on Wall Street overnight.
“The Fed’s problem right now is that plenty of soft indicators and surveys are pointing to a slowdown,” Steve Englander of Standard Chartered Bank said. “While hard data on activity and inflation do not suggest an imminent slowdown, it is hard to ignore a day when the S&P services PMI, new home sales, and Richmond Fed index all come in below the lowest expectation.”
New home sales in the US fell 16.6 percent month-on-month in April, the largest decline in nine years, sending US Treasuries yields down to one-month lows as investors turned once again to safety. The benchmark 10-year note was at 2.76 percent and the two-year yield fell to 2.46 percent, the lowest since April 19, before rising back to 2.48 percent.