Bearish Sentiment in Asia Pacific Markets Continue as Treasury Yields and Oil Prices Soar

Many of Asia Pacific indices have been in the falling direction on Thursday (28 Sep), after energy commodities soared to the year high in contrast to the new low of precious metals since March of this year. Meanwhile, Wall Street signaled for negative session as the US Dollar was still strengthening along with bond yields.

Japan’s NIKKEI got hit the most with a negative 1.7%, dropping the index down to 31,800. Hong Kong’s HSI followed with a 1% drop to 17,400. Meanwhile, New Zealand’s NZX 50 dropped around 0.5% to under 11,300.


On the other hand, some indices saw small changes early morning such as Shanghai’s SSEC, South Korean KOSPI, Australian ASX 200 and Taiwanese TWII.

Meanwhile, US Futures were mixed but biased in the bearish direction as S&P 500 Futures dropped below 4,300 last night but able to swing back, same with NASDAQ that fell below 14,700 but able to climb back as well.


As for energy commodities, WTI crude oil was able to break the year-high ceiling over $94, while Brent broke the $97 level and natural gas briefly touched $2.9 per MMBTU.

On Wednesday, the U.S. 10-year Treasury yield rose 5 basis points to 4.612%, the highest level not seen since 2007. Meanwhile, the 2-year Treasury yield gained 6 basis points to 5.139%.


The US Dollar Index (DXY) rose to over 106, while the 30-year bond price index lost another point down below 114. The gold price psychological resistance level at $1,900 per Troy ounce was broken as well.