SHANGHAI/TOKYO: Asian stock markets dipped on Wednesday after Pyongyang abruptly called off talks with Seoul, throwing a U.S.-North Korean summit into doubt, while surging bond yields revived worries about faster U.S. interest rate hikes that could curb global demand.
MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.2 percent as Pyongyang’s move appeared to mark a break in months of warming ties between North and South Korea and with Washington.
A cancellation of the June 12 summit in Singapore could see tensions on the Korean peninsula flare again even as investors worry about China-U.S. trade tensions and the sustainability of global economic growth.
Strong U.S. retail sales and factory data on Tuesday pushed the U.S. 10-year yield through a key level to hit 3.095 percent, its highest since July 2011, raising worries about higher borrowing costs for companies worldwide.
The 10-year yield US10Y=RR was last at 3.063 percent.
The rise in yields hurt U.S. share markets on concerns it would undercut stock valuations.
The Dow Jones Industrial Average fell 193.00 points, or 0.78 percent, to 24,706.41, the S&P 500 lost 18.68 points, or 0.68 percent, to 2,711.45 and the Nasdaq Composite dropped 59.69 points, or 0.81 percent, to 7,351.63.
Elsewhere in Asia, Japan’s Nikkei slid 0.4 percent, while South Korea’s KOSPI struggled for traction.
Stocks in China dipped as traders awaited news from a second round of Sino-U.S. trade talks in Washington this week, with both sides believed to be still far apart. But Australian stocks bucked the trend and advanced 0.4 percent.
