Asia-Pacific Focus: Mostly Down as U.S. Stocks Suffer Sharp Losses

Asia-Pacific markets fall as U.S. stocks slump on rising Treasury yields. Japan and Australia have seen a rise, but China, Hong Kong, and South Korea have declined.

Asia-Pacific markets experienced a downturn on Thursday, following a rough session on Wall Street where U.S. stocks saw sharp declines. The Dow Jones Industrial Average endured its worst drop in over a month, down by 0.96%, while the S&P 500 and Nasdaq Composite fell by 0.92% and 1.6%, respectively. Investors remained concerned about rising U.S. Treasury yields, particularly the 10-year yield, which stood at 4.221%, putting additional pressure on equities globally.

Asia-Pacific Performance Mixed

Japan’s Nikkei 225 index managed to buck the broader trend, rising 0.2%, reversing early losses despite the Topix index declining by 0.21%. Australia’s S&P/ASX 200 index also posted gains, up 0.31%, benefiting from an uptick in commodity prices and market resilience. However, major Chinese markets saw declines, with Hong Kong’s Hang Seng index dropping 0.93% and mainland China’s CSI 300 falling by the same margin.

Asia-Pacific Focus: Mostly Down as U.S. Stocks Suffer Sharp Losses

South Korea’s markets struggled after a disappointing GDP report. The Kospi fell 0.15%, while the smaller-cap Kosdaq index slipped 0.65%. South Korea narrowly avoided a technical recession, posting GDP growth of just 0.1% in the third quarter, following a 0.2% contraction in the second quarter. This came in below the expected 0.5% growth; year-on-year GDP growth also lagged at 1.5%, well under the anticipated 2%.

Commodity Prices Continue to Climb

In commodity markets, energy prices remained strong. Brent crude oil increased by 1.16%, trading at $75.64 per barrel, while WTI crude rose 1.29% to $71.69. Higher-than-expected U.S. crude oil inventories, which surged by 5.5 million barrels compared to the forecast of 0.9 million barrels, drove the jump in oil prices. Precious metals were also up, with gold rising 0.24% to $2,740.35 per ounce and silver climbing 0.84% to $34.20 per ounce.

Economic Data and Market Outlook

In addition to South Korea’s underwhelming GDP data, U.S. existing home sales came in slightly below expectations at 3.84 million, compared to the forecast of 3.88 million. Investors are awaiting more U.S. economic data, including unemployment claims and flash PMI readings for the manufacturing and services sectors, which could further impact market sentiment.

With U.S. Treasury yields continuing to rise and concerns about global growth persisting, investors in Asia and beyond remain cautious as markets look to upcoming economic reports for further direction.

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