Global market: Asia stocks weak, Tesla shares slide

Asia market

Early in the Asian day, MSCI’s broadest index of Asia-Pacific shares outside Japan was trading steady. Japan’s Nikkei stock index rose 0.24% while Australian shares were up 0.1%.

China’s blue-chip CSI300 index edged down 0.16% in early trade, while Hong Kong’s Hang Seng index opened 0.64% lower.

US Market

On Monday, gains in energy shares helped lift world stock indexes following the surprise OPEC+ group’s new production cuts that could push oil prices toward $100 a barrel.

The S&P 500 energy sector index surged 4.9% with Chevron Corp, Exxon Mobil Corp and Occidental Petroleum Corp all rallying more than 4%.

However, the prospect of higher oil costs added to inflation worries on Wall Street just days after evidence of cooling prices raised expectations that the U.S. Federal Reserve might soon end its aggressive monetary tightening campaign.

The Dow Jones Industrial Average rose 0.98%, the S&P 500 gained 0.37% and the Nasdaq Composite dropped 0.27%.

Tesla Shares drop

Shares of Tesla Inc dropped 6.1% after disclosing March-quarter deliveries rose just 4% from the previous quarter, even after CEO Elon Musk slashed car prices in January to boost demand.

US Treasury yields

Treasury yields retreated after the U.S. manufacturing data, which increased expectations for some investors the US Fed will cut rates later this year as the economy slows. Separate data also showed U.S. construction spending weakened in February.

The yield on benchmark 10-year Treasury notes was last at 3.4263% compared with its U.S. close of 3.432% on Monday.

The two-year yield, which rises with traders’ expectations of higher Fed fund rates, touched 3.9841% compared with a US close of 3.98%.

The dollar reversed some losses but remained on the defensive after losing ground on Monday in the wake of the weak U.S. economic data.

The U.S. dollar index which tracks the greenback against a basket of currencies of other major trading partners, was last up at 102.11. The euro was a touch higher at $1.0904, while against the Japanese yen, the dollar was off 0.09% at 132.35.