US shares had fallen overnight as investors sold off high-flying technology shares to focus on other sectors likely to benefit from an economic recovery. The Dow Jones fell 0.39 per cent, the S&P 500 lost 1.3 per cent, and The Nasdaq dropped 2.7 per cent.
Meanwhile, the US yield curve steepened overnight. The gap between yields on two- and 10-year Treasury notes widened to as much as 135.4 basis points on Wednesday, the most since February 26, when the curve had steepened by the most since 2015. In early Thursday trade, the 10-year Treasury yield crept higher to 1.48 per cent, though off the one-year high of 1.61 per cent struck last week.
The creep up in benchmark yields weighed on Asian stocks. By early Thursday, Australian shares had lost 1 per cent, while Japan’s Nikkei dipped 1.5 per cent.
(with inputs from Reuters)