As reported by Investing.com, Asian stock markets showed a mixed performance on Friday as market participants adopted a cautious stance ahead of key U.S. jobs data that could shape expectations for the Federal Reserve’s interest-rate path, with risk appetite simultaneously dampened by high oil prices and elevated bond yields. U.S. stock futures edged higher in Asian trading by 06:41 GMT, following a slightly higher Wall Street close on Thursday after a sharp rise in Treasury yields eased later in the session.
Hong Kong Shares Drop 3 Percent While Japan Nikkei Slips
Hong Kong led regional losses as investors returned from Thursday’s holiday to face soaring global bond yields and renewed concerns over oil supplies. The Hang Seng Index dropped 3% to an 11-week low around 23,900 points, with technology stocks facing heavy pressure as the Hang Seng TECH sub-index traded 2.5% lower. Japan’s Nikkei 225 fell 0.9%, while the broader TOPIX index slipped 1.1%. South Korea’s KOSPI edged up 0.3% after swinging earlier in the session. Australia’s S&P/ASX 200 gained 0.5% while Singapore’s Straits Times Index fell 0.3%. Mainland Chinese markets remained shut for the National Day Golden Week holiday and are scheduled to reopen on October 8, while Indian markets were closed on Friday for Mahatma Gandhi Jayanti.
Tokyo Core Inflation Rises 2.7 Percent as BOJ Weighs Rate Hikes
During September, Tokyo’s core consumer price index experienced a 2.7% year-on-year increase, moving up from August’s 1.8% figure and coming in higher than the market forecast of 2.4%. This inflation print followed a summary of the Bank of Japan’s September meeting, which showed policymakers seeing a need to accelerate rate hikes as inflation risks mounted. The BOJ has raised its policy rate to 1.25%, and investors are weighing another potential increase at its October or December meetings.
Treasury yield climbs to highest level since 2002
Market focus shifted entirely to the U.S. nonfarm payrolls report due later on Friday. Economists expect the U.S. economy to have added 89,000 jobs in September, with unemployment holding steady at 4.1%. Based on CME FedWatch figures, markets are currently calculating a roughly 25% chance of a Federal Reserve rate hike occurring in October—representing a steep drop from the 69% probability recorded a week prior—whereas a December rate increase continues to be entirely priced in. Meanwhile, the U.S. 10-year Treasury yield climbed to 5.34% on Thursday, its highest level since 2002, before easing back to around 5.25% in Asian trading. Higher long-term yields continue to elevate borrowing costs globally and increase pressure on equity valuations, alongside oil prices holding above $102 a barrel amid reports of planned U.S. military presence expansions in the Middle East and China halting oil-product exports.
Hong Kong stocks fall amid soaring global bond yields
Why did Hong Kong stocks drop sharply on Friday?
The Hang Seng Index fell 3% to an 11-week low around 23,900 points as investors returned from Thursday’s holiday to confront soaring global bond yields and renewed concerns over oil supplies.
What was the Tokyo core inflation rate for September?
In September, Tokyo registered a 2.7% year-on-year increase in its core consumer price index, which was up from 1.8% in August and surpassed the predicted 2.4% market forecast.
How high did the U.S. 10-year Treasury yield climb?
The U.S. 10-year Treasury yield climbed to 5.34% on Thursday—its highest level since 2002—before easing to approximately 5.25% during Asian trading hours.
When do mainland Chinese markets reopen from holiday?
Mainland Chinese markets remained shut for the National Day Golden Week holiday and are scheduled to reopen on October 8.
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