Meanwhile, The Turkish lira nosedived early Monday, falling about 17%, after the country's president,
Agbal had been struggling to counter inflation by raising interest rates, while Erdogan contended that raising interest rates would contribute to inflation — contrary to economic experience and theory,
An increase in the key interest rate had pushed the lira higher in recent days.
“Turkey will be an interesting example of what emerging markets can expect if inflation fears rise markedly," Halley said.
In Asian trading,
Major Japanese stocks fell nearly across the board, including automakers like
“Asia markets had seen a mixed commencement to the week with the rising bond yields once again weighing on sentiment. The see-sawing of the influence between rising bond yields and improving economic recovery prospect may well remain for the region going into the end of March,” said
The move last week by the Fed will restore some of the capital requirements for big banks that were suspended in the early months of the viral outbreak, in order to give banks flexibility. The banking industry had hoped those measures would be extended.
But most of the Fed's policies aimed at supporting the recovery from the pandemic remain intact.
Worries about the coronavirus pandemic remain in the region, where vaccine rollouts in some nations such as
The Russell 2000 index of smaller companies clawed back some of its losses from a day earlier, gaining 0.9% to 2,287.55.
As interest rates have risen, pricier stocks like technology companies have fallen. The prospect of higher interest rates as bond yields rise has some investors concerned that economic growth could slow. There are also concerns that the rise in bond yields could be a harbinger of inflation.
In energy trading, benchmark
In currency trading, the