On Tuesday (29 September, 9:31 AM, GMT+7, Bangkok time), most major indices in the Asia-Pacific exhibited a downward trend as market participants reacted to rising U.S. Treasury yields, reflecting concerns that persistent inflation may prompt the U.S. Federal Reserve to raise interest rates further.
Yields on U.S. government debt continued to advance, with the 10-year Treasury note closing above 5.2% and the 30-year yield also climbing to 5.56%. This movement has raised unease among equity investors, as the prospect of sustained higher rates adds uncertainty to the outlook for economic growth and corporate performance.
Brent Schutte, Northwestern Mutual Wealth Management’s CIO, noted that while the economy remains broadly resilient, fluctuations in interest rates are increasingly steering market momentum. Elevated yields are creating both challenges and opportunities for investors, particularly in the bond market, which now offers more attractive entry levels, provided that inflation remains under control.
Additionally, renewed diplomatic efforts between the United States and Iran are taking place, with both countries holding indirect discussions with the help of Qatari mediators, according to Al Jazeera, citing Iranian Foreign Minister Abbas Araghchi.
Investors are also monitoring upcoming U.S. economic data. Figures set to be released Tuesday include September’s consumer confidence index and the latest job openings and labor turnover survey for August.
Japan’s NIKKEI dropped by 1.03% to 65,199.41. South Korea’s KOSPI fell by 0.42% to 6,860.93, while Australia’s ASX 200 climbed by 0.05% to 8,684.40.
As for stocks in China, Shanghai’s SSEC decreased by 0.29% to 3,812.68. Shenzhen’s SZI slid by 0.04% to 12,853.14, and Hong Kong’s HSI declined by 0.55% to 24,506.12.
The U.S. stock markets edged down on Monday as the Dow Jones Industrial Average (DJIA) lost 0.67% to 51,481.51. NASDAQ slumped by 0.92% to 26,820.38, and S&P 500 contracted by 0.77% to 7,683.69. VIX soared by 8.07% to 16.07.
As for commodities, oil prices settled lower last Monday following persistent concerns over supply disruptions. Traders focused on diplomatic efforts, as Qatari officials committed to working with U.S. and Iranian representatives to pursue an agreement aimed at resuming safe passage through the Strait of Hormuz. Brent crude advanced 96 cents, or 0.9%, to finish at $105.28 per barrel. U.S. West Texas Intermediate crude edged up 19 cents, or 0.2%, ending the session at $92.60 a barrel.
This morning, Brent futures surged $1.28, or 1.22%, to $106.56 per barrel, and WTI futures gained 94 cents, or 1.02%, to $93.54 per barrel.
Meanwhile, gold futures dipped by 0.11% to $4,164.00 per Troy ounce.
