Asian shares
rebounded from three-month lows on Wednesday, though the specter of
higher borrowing costs in the United States and concerns about the
apparent lack of progress in talks between Greece and its creditors
sapped confidence.
MSCI's
broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS rose
0.8 percent after hitting a fresh three-month low. At one point, it was
down 9 percent from the seven-year peak hit in late April.
Japan's Nikkei .N225 eased 0.1 percent to three-week lows while European shares were expected to dip further.
Spreadbetters expect Germany's DAX .GDAXI, Britain's FTSE .FTSE and France's CAC40 .FCHI to fall 0.1-0.2 percent, a day after a pan-European stock index fell to a four-month low.
"Market players are reducing risk positions on caution about higher volatility in interest rate markets," said Kyoya Okazawa, head of global equity and commodities at BNP Paribas in Tokyo.
Share markets around the world, particularly some emerging markets that have relied on foreign capital, have been hit on growing expectations that the U.S. Federal Reserve will start to raise interest rates before the year is out.
U.S. bond prices slipped as they were also hit by this week's flood of supply, sending the 10-year U.S. benchmark bond yield to an eight-month high of 2.458 percent US10YT=RR and last stood at 2.448 percent.
Strong U.S. data, including Friday's report showing solid increases in employment, and recent comments from top Fed officials suggesting a rate hike is likely later this year have driven up bond yields in the past several days.
"In the big scheme of things, we could be witnessing the end of 'Goldilocks' markets, where both bonds and shares prices have risen (on the back of easy monetary policy)," said Shuji Shirota, head of macroeconomy strategy at HSBC in Tokyo.
Japan's Nikkei .N225 eased 0.1 percent to three-week lows while European shares were expected to dip further.
Spreadbetters expect Germany's DAX .GDAXI, Britain's FTSE .FTSE and France's CAC40 .FCHI to fall 0.1-0.2 percent, a day after a pan-European stock index fell to a four-month low.
"Market players are reducing risk positions on caution about higher volatility in interest rate markets," said Kyoya Okazawa, head of global equity and commodities at BNP Paribas in Tokyo.
Share markets around the world, particularly some emerging markets that have relied on foreign capital, have been hit on growing expectations that the U.S. Federal Reserve will start to raise interest rates before the year is out.
U.S. bond prices slipped as they were also hit by this week's flood of supply, sending the 10-year U.S. benchmark bond yield to an eight-month high of 2.458 percent US10YT=RR and last stood at 2.448 percent.
Strong U.S. data, including Friday's report showing solid increases in employment, and recent comments from top Fed officials suggesting a rate hike is likely later this year have driven up bond yields in the past several days.
"In the big scheme of things, we could be witnessing the end of 'Goldilocks' markets, where both bonds and shares prices have risen (on the back of easy monetary policy)," said Shuji Shirota, head of macroeconomy strategy at HSBC in Tokyo.
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