Asian markets ended mixed on Sept 25 as investors grappled with elevated oil prices, surging global bond yields and lingering uncertainty over the Middle East conflict and US-China trade relations.
Tokyo bucked the cautious regional tone, closing 1.3% higher, while Hong Kong fell 1.3%. Sydney and Jakarta also declined, while markets in Shanghai, Taipei and Seoul were closed for holidays.
Oil prices provided some respite after their recent surge, with Brent crude easing about 0.8% after jumping more than 3% on Sept 24. However, concerns over supply disruptions and renewed inflationary pressure remained firmly in focus.
Bond markets added to investor unease. The benchmark US 10-year Treasury yield climbed to its highest level since 2007 on Sept 24, while the 30-year yield reached its highest since 2004. Japan’s 10-year government bond yield subsequently touched a fresh 30-year high on Sept 25.
Volatility is expected to remain elevated, particularly across commodities and bonds, while currency movements have been relatively moderate despite a preference for the US dollar.
Trade tensions also remained in the background after the US and China extended their trade truce by just two months to Jan 10.
The agreement leaves major issues including tariffs, agricultural purchases, rare earths and technology restrictions unresolved, keeping trade risks on investors’ radar.
European markets opened firmer, with London up 0.6%, while Frankfurt and Paris also advanced, offering a brighter start after Thursday’s broad global equity decline.
