Asian stocks fell on Tuesday and government bond yields fell amid fears the economic recovery from the pandemic was losing momentum.
Stocks fell in Japan, Hong Kong and China, where stocks remain under a cloud on Beijing crackdown on a number of private sectors. Tencent Holdings Ltd., one of the upheaval Chinese technology giants, even slumped 9.3%. The S&P 500 and Nasdaq 100 contracts fluctuated.
The Singapore-traded SGX Nifty, a leading indicator of the performance of the Indian Nifty 50 index, fell 0.24% to 15,887 at 8:50 a.m.
The proliferation of the Delta Covid-19 variant and signs of robust but weaker growth in U.S. manufacturing contributed to an overnight slump in the S&P 500. The US 10-year Treasury yield fell below 1.20% after falling to 1.15%. The real yield on 10-year government bonds – which masks the expected effects of inflation – was near a record low.
Oil slumped as the virus and signs of slower recovery in the Chinese economy clouded consumer prospects. Little was changed as a yardstick for the dollar.
At home, Punjab National Bank and RBL Bank could react as the companies released quarterly results after the market closed on Monday. Bharti Airtel, Dabur and Adani Ports are among the companies due to announce their results on Tuesday.
Foreign investors sold Rs 2,560 billion net shares on July 30, according to the NSDL website.