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Global Markets Mixed: Kospi Dips 2%, Bond Yields Soar Amid Rate Hike Fears
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Moneycontrol•28-09-2026, 07:30
Global Markets Mixed: Kospi Dips 2%, Bond Yields Soar Amid Rate Hike Fears
- •Asian markets show mixed trends; US stock futures weaken after Donald Trump rejects Iran's Strait of Hormuz proposal.
- •South Korea's Kospi falls 2%, while Japan's Topix and Nikkei 225 see slight gains.
- •India's GIFT Nifty signals a sluggish start; Indian markets have fallen for seven consecutive weeks, worst since COVID pandemic.
- •Global bond yields rise above 4% for the first time since 2007, fueling fears of high financing costs impacting economy and corporate earnings.
- •US Federal Reserve officials hint at further rate hikes due to strong growth and robust labor market; Bank of Japan may also raise rates in October.
Key Questions Answered
US President Donald Trump rejected Iran's latest proposal to reopen the Strait of Hormuz within seven days, though he remains hopeful that talks will resume this week.
Global bond yields rose above 4% due to rising borrowing costs, strong economic growth, a robust labor market, and concerns about government debt that are pushing long-term Treasury yields higher.
According to a Bloomberg report, the Bank of Japan could raise its benchmark rate for a second consecutive month at its October meeting.
