Global Markets Wary Amid Bond Yield Surge and Policy Anticipations

This piece discusses how surging bond yields are affecting equity valuations, with a focus on the tech sector. It highlights various economic indicators from China and anticipates central bank actions in major economies. Rising bond yields and political uncertainties worldwide impact financial markets and currencies.

Asian stock markets started the week cautiously as surging bond yields pose challenges for equity valuations, particularly affecting the tech sector. Key events this week include central bank meetings and major economic data releases. Chinese data revealed a modest 3.0% rise in retail sales for November, missing expectations.

China's blue-chip index slightly declined after already losing more than 2% on Friday. Over the weekend, a Chinese central bank official mentioned possible room for reserve requirement ratio cuts, although previous measures had limited effects on credit.

Interest rates in the United States and Sweden may fall, with expectations for steadiness in Japan, the UK, and Norway. Investor focus will be on the Federal Reserve's decisions and future guidance, with markets largely expecting a rate cut.