On Thursday (8 October, 9:25 AM, GMT+7, Bangkok time), most major indices in the Asia-Pacific exhibited a downward trend, mirroring declines seen in U.S. stocks as Treasury yields advanced and the latest Federal Reserve meeting minutes indicated the possibility of another interest rate increase later this year. The climb in oil prices has also heightened inflation concerns, coupled with renewed selling pressure on technology shares.
According to the minutes published Wednesday from the Fed, a majority of policymakers noted that an additional rate hike would likely be warranted by year-end. This view reflects ongoing inflation readings above the central bank’s 2% target. However, any further tightening would be data-dependent, with officials providing no signals on the timing of a potential move.
Wall Street closed lower as benchmark Treasury yields hit multi-decade highs. The 10-year note yield climbed to 5.365%, a level last seen in April 2002, while the 30-year yield touched 5.732%, the highest since May 2002. The surge in yields has weighed on equities broadly, with sectors sensitive to borrowing costs, such as industrials, underperforming so far this week.
Some anticipate that upcoming corporate earnings reports could provide support for a continued rally, provided results meet or surpass expectations. Earnings per share for S&P 500 companies are forecast to rise by more than 24%, according to data from Bloomberg Intelligence.
Japan’s NIKKEI dropped by 0.98% to 69,352.25. South Korea’s KOSPI declined by 0.36% to 6,779.37, and Australia’s ASX 200 fell by 0.56% to 8,678.70.
Shanghai’s SSEC rose by 0.26% to 3,852.10. Shenzhen’s SZI added 0.09% to 12,898.82, while Hong Kong’s HSI contracted by 0.19% to 24,083.90.
The U.S. stock markets edged down on Wednesday as the Dow Jones Industrial Average (DJIA) slumped by 0.66% to 51,179.87. NASDAQ dipped by 0.22% to 27,538.69, and S&P 500 slid by 0.22% to 7,801.77. VIX increased by 0.47% to 15.08.
As for commodities, oil prices settled lower on Wednesday after the International Energy Agency moved to accelerate the release of strategic oil reserves and focus on increasing diesel availability, as the Middle East conflict continues to place pressure on global fuel supplies. Brent crude had fallen 38 cents to close at $100.20 per barrel, representing a 0.38% drop. U.S. West Texas Intermediate crude settled at $88.28 per barrel, down $1.16 or 1.3%.
This morning, Brent futures surged $1.76, or 1.76%, to $101.96 per barrel, and WTI futures gained $1.32, or 1.50%, to $89.60 per barrel.
Meanwhile, gold futures climbed by 0.51% to $4,161.80 per Troy ounce.
