[MARKET ANALYSIS] Asia-Pac stocks declined following the recent bond rout amid inflationary concerns and geopolitical uncertainty

APAC Stocks: Negative

• Asia-Pac stocks mostly declined following the weak handover from the US, with sentiment dampened amid headwinds from a higher yield environment and the uncertain geopolitical backdrop.

ASX 200: -0.9%

• Retreated with the declines led by underperformance in the mining and materials sectors, while a lack of data and firmer yields contributed to the uninspired mood.

Nikkei 225: -1.1%

• Declined at the open and reverted to beneath the 60,000 level with notable pressure seen in machine tool and electrical equipment manufacturers, while recent comments from Japan's Finance Minister and current FX levels are seen to stoke intervention risks.

Hang Seng & Shanghai Comp: Hang Seng -0.6% / Shanghai Comp -0.5%

• Chinese markets conform to the downbeat sentiment amid bond and inflation woes, with the declines in Hong Kong led by weakness in mining, solar and property stocks, while there was a lack of surprises from the PBoC announcement to maintain the benchmark Loan Prime Rates for the 12th consecutive month.

US Equity Futures: Subdued

• US index futures are lacklustre following the recent inflationary concerns and bond selling, while participants look ahead to NVIDIA earnings after-market on Wednesday.

European Equity Futures -0.8%

• Indicate a lower cash market open with Euro Stoxx 50 futures down 0.8% after the cash market closed flat on Tuesday.