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Asian Stocks Mixed as Rate Hike Bets Build; Kospi Slips, Japan Indices Rise
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CNBC TV18•28-09-2026, 06:46
Asian Stocks Mixed as Rate Hike Bets Build; Kospi Slips, Japan Indices Rise
- •Asian stocks opened mixed with MSCI's gauge lower, Kospi sliding 0.46%, while Japan's Topix rose 0.48% and Nikkei 225 gained 0.89%.
- •Indian markets faced a muted start, hinted by GIFT Nifty, after seven consecutive weeks of decline, one of the worst since the COVID pandemic.
- •Rising borrowing costs, with global bond yields above 4% for the first time since 2007, fueled investor caution over economic drag and company earnings.
- •US Federal Reserve officials indicated more tightening due to resilient growth and a strong labor market, with traders pricing in another 25 basis-point hike.
- •The Bank of Japan may raise its benchmark rate for a second straight month in October, while oil prices remained a key driver, with Brent advancing to $106 a barrel.
Key Questions Answered
Asian stocks opened mixed as investors braced for potential interest rate hikes and tracked high energy costs. South Korea's Kospi slipped 0.46%, while Japan's Topix and Nikkei 225 rose 0.48% and 0.89% respectively.
Resilient economic growth, a strong labor market, and concerns regarding government debt are fueling expectations of further monetary tightening, pushing long-term Treasury yields higher. Cleveland Fed President Beth Hammack noted these factors are driving the trend.
Brent crude advanced to around $106 per barrel and West Texas Intermediate climbed above $93 due to elevated costs feeding inflation pressures. Meanwhile, US President Donald Trump rejected Tehran's proposal to reopen the Strait of Hormuz within seven days.
