Asian Equities Show Mixed Performance Amid Oil Price Movements, Bond Market Pressures, and Currency Shifts

TOKYO (AP) — Asian shares traded mixed in early Thursday trading as investors processed recent movements in oil prices and the U.S. bond market.

Japan’s benchmark Nikkei 225 rose 1.3% in morning trading to close at 65,883.41, buoyed by renewed interest in artificial intelligence driving demand among chipmakers.

Australia’s S&P/ASX 200 declined 0.7% to 8,700.50.

Hong Kong’s Hang Seng dropped 0.5% to 24,715.95, while the Shanghai Composite slipped 0.8% to 3,902.33. Trading resumed in South Korea following the Chuseok autumn harvest holiday.

In energy markets, benchmark U.S. crude oil fell 0.82% to $91.40 per barrel, and Brent crude— the international standard— decreased 0.83% to $102.22 per barrel.

Brent’s price remains well above its level just before the conflict with Iran began (approx. $72), fueling worries that ongoing hostilities could keep oil supplies constrained in the Middle East for an extended period. Mediation talks are underway between U.S. and Iranian officials, though no concrete agreements have been reached to date.

Overnight, Wall Street faced pressure from the U.S. bond market after a surprise robust economic report sparked inflation concerns.

The S&P 500 posted a drag of 0.8% after closing just 0.4% below its record set the previous month. The Dow Jones Industrial Average fell 352 points (-0.7%), while the Nasdaq composite dropped 1.1% from its own all‑time high.

The 10‑year Treasury yield climbed to 5.10% from 4.96%, marking a significant shift for the bond market. Higher yields depress stock valuations and slow economic activity by increasing borrowing costs across sectors.

A brief rally in Wednesday led the 10‑year yield to rise toward 5.14%, returning it to levels seen in 2007 preceding the global financial crisis. Yields have risen steeply recently due to heightened inflation anxieties, the United States’ sizable debt load, and additional concerns.

Concerns over inflation intensified when preliminary data indicated U.S. business activity surged to its strongest point in over five years.

Persistent high inflation prompted the Federal Reserve to raise its short‑term interest rate last week—the first increase in three years. Fed Chair Michael Barr stated during a speech this week that further hikes “will likely be necessary” to achieve the 2 % inflation target.

The Bank of Japan recently raised its benchmark interest rate to curb the yen’s depreciation, but the decision had been anticipated for weeks, leaving the yen unchanged. A weak yen disadvantages oil‑importing Japan as commodity prices climb.

In currency market moves, the U.S. dollar edged lower to 157.94 Japanese yen from 158.30, while the euro settled at $1.1382, little having shifted from $1.1388.

Overall, the S&P 500 declined 58.61 points to 7,706.03. The Dow fell 352.10 to 51,511.59, and the Nasdaq composite dropped 308.24 to 26,936.04.

_

AP Business Writer Stan Choe contributed to this report.

_

Yuri Kageyama is on Threads:

Source link