Asian stock markets mixed following an intensification of global bond sell-offs
US futures are up slightly, ahead of today’s monthly employment report
Asian equity markets are showing mixed trends following the intensification of the global bond sell-off. US futures are up slightly, ahead of today’s monthly employment report: the figures could provide further insight into the likelihood of the Federal Reserve raising interest rates in October, after the central bank raised rates in September for the first time in three years.
The yield on 10-year US Treasury bonds fell slightly after reaching around 5.34 per cent on Thursday, the highest level since 2002. The rise in bond yields has put downward pressure on equity markets, as higher borrowing costs can reduce returns on shares.
On Thursday, the main European share indices fell sharply following a surge in government bond yields. On Wall Street, the S&P 500 rose by 0.2 per cent, the Dow Jones Industrial Average recorded a slight gain of less than 0.1 per cent, and the Nasdaq Composite advanced by less than 0.1 per cent.
Oil prices have stabilised, despite the United States sending another aircraft carrier and additional troops to the Middle East, and President Donald Trump’s threats regarding possible further escalation against Iran. The move follows statements made on Wednesday by Mr Trump, who, speaking to journalists, had threatened to ‘blow them up’ or reach an agreement, referring to Iran. Brent crude, the international benchmark, fell by 0.2 per cent to $102.13 per barrel following Thursday’s rise. This is well above the level of around $72 per barrel recorded at the end of February, before the war. The US dollar fell to 157.91 Japanese yen from 158.09 yen. The euro traded at $1.1250, up from $1.1244.
Japan’s Nikkei 225 index fell by 0.9 per cent to 68,326.72 points. South Korea’s Kospi rose by 0.2 per cent to 6,984.96 points. Hong Kong’s Hang Seng index lost 2.7 per cent to close at 23,956.32 points, hitting its lowest level since July. Australia’s S&P/ASX 200 index gained 0.4% to 8,651.30 points. Taiwan’s Taiex rose by 0.2%.
