GLOBAL MARKETS-Asia shares mixed as broader worries about U.S. hedge fund default ease

By Alwyn Scott and Scott Murdoch
NEW YORK, March 30 (Reuters) - Asian shares were mixed early
Tuesday as global investors shook off worries about a hedge fund
default that roiled global banking stocks overnight, while
rekindled concerns about inflation pushed bond yields higher.
Wall Street pared earlier losses driven by the banking
sector on fears that issues with a defaulting hedge fund could
spread throughout the banking sector. In Asia, the MSCI's broadest index of Asia-Pacific shares
outside Japan .MIAPJ0000PUS was marginally higher by 0.08% in
early in the session Tuesday.
Hong Kong's Hang Seng Index .HSI was up 0.36% to 28,440
but in Australia a weaker tone emerged when the S&P/ASX200
.ASXJO slid 0.4% to its lowest point for a week.
Mainland China's CSI300 index .CSI300 is 0.18% higher in
early trade while Japan's Nikkei .N225 is off 0.1%.
Nomura 8604.T and Credit Suisse CSGN.S are facing
billions of dollars in losses and regulatory scrutiny after a
U.S. investment firm, named by sources as Archegos Capital,
defaulted on equity derivative bets, putting investors on edge
about who else might be exposed.
Nomura 9716.T shares were down a further 2.49% Tuesday
after dropping by as much as 16% on Monday when it revealed it
could take a $2 billion loss from the hedge fund fallout.
Michael McCarthy, chief markets strategist at CMC Markets
said the worries "are very specific to a small number of hedge
funds." He said he did not expect any systemic fallout.
Still, the dollar gained on safe-haven buying, while bond
prices came under pressure as the outlook for economic growth
raised the specter of inflation, he added.
Citigroup equity derivative solutions director Elizabeth
Tian said investor sentiment was still closely tied to the pace
of the global vaccine rollout.
"Investors will also be watching the number of COVID cases
as rises in Western Europe and the Philippines sees the return
of renewed restrictions while vaccination attempts threaten to
stall amidst supply constraints and vaccine nationalism," Tian
said.
"While restrictions are increased in Europe, the UK will be
relaxing stay at home rules," she added.
During the Asian session, benchmark 10-year yields
US10YT=RR hit 1.7321%, up 1.4 basis points, after earlier
trading marginally higher in the U.S. after the state of New
York on Monday announced people aged 30 and older could get
coronavirus vaccinations starting March 30. Crude prices inched up on a report that Russia would back
broadly stable oil output when the Organization of the Petroleum
Exporting Countries and allies meet this week.
On Wall Street, the Dow Jones Industrial Average .DJI rose
0.3%, the S&P 500 .SPX lost 0.09% and the Nasdaq Composite
.IXIC dropped 0.6%.

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Global assets http://tmsnrt.rs/2jvdmXl
Global currencies vs. dollar http://tmsnrt.rs/2egbfVh
Emerging markets http://tmsnrt.rs/2ihRugV
MSCI All Country World Index Market Cap http://tmsnrt.rs/2EmTD6j
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>