Asian stock markets presented a mixed picture on Thursday as investors weighed the impact of fluctuating oil prices, rising U.S. Treasury yields, and currency market movements. Persistent inflation concerns continued to influence investor sentiment across the region.
In Japan, the Nikkei 225 index climbed 1.3% during morning trading, buoyed by gains in technology and chip stocks, which benefited from sustained interest in artificial intelligence. Contrastingly, Australia’s S&P/ASX 200 decreased by 0.7%, and Hong Kong’s Hang Seng Index and the Shanghai Composite saw declines of 0.5% and 0.8%, respectively. South Korean markets remained closed in observance of the Chuseok holiday.
Oil prices also experienced a downturn, with U.S. crude decreasing by 0.82% to $91.40 per barrel and Brent crude falling 0.83% to $102.22. The continued high levels of oil prices have raised concerns about their potential impact on inflation and economic growth.
In the U.S., stock indices fell in the previous trading session as rising Treasury yields exerted additional pressure on equities. The S&P 500 dropped 0.8%, the Dow Jones Industrial Average shed 0.7%, and the Nasdaq Composite decreased by 1.1%. The yield on the 10-year U.S. Treasury reached 5.10%, reflecting ongoing concerns about inflation, government debt, and economic activity. Higher borrowing costs associated with rising yields can negatively affect stock valuations and economic growth.
On the currency front, the U.S. dollar slightly decreased to 157.94 Japanese yen, while the euro held steady at around $1.1382.