Stories
Asian Shares Mixed Amid Bond Sell-Off, US Jobs Data Looms
- •Asian markets showed mixed results as a global bond sell-off deepened, with Hong Kong's Hang Seng hitting a three-month low.
- •The yield on the 10-year US Treasury reached 5.25%, after hitting 5.34% on Thursday, its highest since 2002, driven by inflation and rising US government debt.
- •Investors are closely watching the upcoming US monthly jobs report for September, which could influence the Federal Reserve's decision on an October interest rate hike.
- •Oil prices steadied despite increased US military presence in the Middle East and President Trump's threats against Iran.
- •Analysts suggest the US 10-year Treasury yield could rise further towards 5.5% to 6% due to resilient US economic growth, potentially pressuring stock markets.
Key Questions Answered
The yield on the 10-year US Treasury reached around 5.25 per cent, climbing from 5.34 per cent on Thursday, driven by inflationary pressure from a global energy shock linked to the Iran war and rising US government debt. This surge past the psychological 5 per cent threshold reflects investors demanding higher returns amid resilient economic growth.
Asian shares showed mixed results as the global bond sell-off deepened ahead of US jobs data. Japan's Nikkei 225 fell 0.9 per cent, Hong Kong's Hang Seng dropped 2.7 per cent to its lowest level since July, while South Korea's Kospi added 0.2 per cent and Australia's S&P/ASX 200 gained 0.4 per cent.
Investors and traders are closely watching the September jobs report because the data could provide signals regarding the likelihood of an October interest rate hike by the Federal Reserve. This follows the Fed's decision to raise rates in September for the first time in three years.
