On Monday (28 September, 9:31 AM, GMT+7, Bangkok time), major indices in the Asia-Pacific showed a mixed performance amid recent gains in U.S. stocks and sharp increases in Treasury yields.
Last week, U.S. technology shares drove indexes higher, with Meta Platforms posting a nearly 13% surge, fueled by positive sentiment towards the launch of Muse AI. Microsoft rose over 4%, and both Apple and Nvidia finished the week with gains exceeding 1%.
These advances occurred despite a notable upward movement in Treasury yields, which reached levels last seen in 2007 for the 10-year note and 2004 for the 30-year bond. The 2-year Treasury yield also climbed, adding around 17 basis points. Market participants increased expectations of further U.S. Federal Reserve interest rate hikes as inflation pressures persist.
Oil market volatility continued, following reports that U.S. President Donald Trump declined a conditional ceasefire proposal from Iran related to the reopening of the Strait of Hormuz on Saturday. According to a report in The Wall Street Journal citing sources, Trump told advisors that military actions against Iran could resume after the November midterm elections.
Nevertheless, Axios reported Sunday that the president indicated the possibility of renewed talks with Iran in the coming week.
Looking ahead, investors are focused on upcoming U.S. economic data, including Wednesday’s release of the August personal consumption expenditure price index. Moreover, new manufacturing figures and the September jobs report are scheduled for Thursday and Friday, respectively.
Japan’s NIKKEI slid by 0.01% to 66,357.38. South Korea’s KOSPI slumped by 2.20% to 6,924.88, while Australia’s ASX 200 rose by 0.21% to 8,683.30.
As for stocks in China, Shanghai’s SSEC plummeted by 1.31% to 3,837.42. Shenzhen’s SZI plunged by 2.57% to 12,974.36, while Hong Kong’s HSI surged 0.54% to 24,641.26.
The U.S. stock markets edged up on Friday as the Dow Jones Industrial Average (DJIA) grew by 0.93% to 51,828.62. NASDAQ advanced by 0.48% to 27,068.71, and S&P 500 gained 0.51% to 7,743.41. VIX dropped by 5.11% to 14.87.
As for commodities, oil prices settled lower last Friday as investors responded to increased speculation about progress toward a truce between the United States and Iran, with possible discussions surrounding a potential U.S. ban on diesel exports. Brent crude closed the session down $2.28, or 2.1%, at $104.32 per barrel. U.S. benchmark West Texas Intermediate (WTI) settled $2.20 lower, marking a 2.3% drop to $92.41.
However, oil markets reversed course at the start of the week after Trump dismissed a proposed peace agreement from Iran, which contributed to sustained geopolitical uncertainty in the Middle East. Brent futures soared $2.28, or 2.19%, to $106.60 per barrel, and WTI futures increased $1.55, or 1.68%, to $93.96 per barrel.
Meanwhile, gold futures fell by 1.68% to $4,248.80 per Troy ounce.
