Asia report: Most markets fall as US bond yields surge

(Sharecast News) - Asia-Pacific stock markets had a mainly downward trajectory on Thursday, following Wednesday's gains, as rising US Treasury yields and surging oil prices posed challenges for investor confidence. The benchmark 10-year US Treasury yield surged overnight to levels not seen since 2007, while crude futures saw an upward movement overnight to trade well over $90 per barrel.

"Asian equity markets with a mixed tone as traders evaluated the performance in the US leading into the end of the month and quarter," said TickMill market analyst Patrick Munnelly.

"Global yields and oil prices saw further upside, impacting market sentiment.

"The Nikkei 225 underperformed, slipping below the 32,000 handle and facing headwinds from a mass ex-dividend day involving over 1,400 companies in Japan."

Munnelly added that the Hang Seng and Shanghai Composite indices diverged, with the property sector facing challenges following the suspension of Evergrande shares and some of its units.

"However, the mainland market was buoyed by the People's Bank of China's liquidity injections and China's support pledges."

Japan bourses slump, most other markets follow suit

Japan's major indices took a hit, with the Nikkei 225 plunging by 1.54% to close at 31,872.52, while the Topix dropped 1.43% to finish at 2,345.51.

Among the major losers on Tokyo's benchmark was Keio Corporation, witnessing a 3.65% drop, closely followed by Astellas Pharma and West Japan Railway Co, which decreased by 3.53% and 3.51%, respectively.

China, however, presented a contrasting picture with a mild rise, as the Shanghai Composite increased by a marginal 0.1% to 3,110.48, and the Shenzhen Component ticked up by 0.05% to 10,109.53.

Companies like Hunan Copote Science Technology and Datang Telecom Technology Co stood out in Shanghai, both jumping over 10% in Thursday's trading.

The Hang Seng Index experienced a 1.36% decline in Hong Kong, settling at 17,373.03.

The gaming and hospitality sectors faced significant losses, with Galaxy Entertainment Group plummeting by 5.73% and Sands China by 4.75%.

Additionally, JD Health International declined by 3.95%.

South Korea's market remained closed on Thursday in observance of the Chuseok autumn harvest festival holiday.

Australia's S&P/ASX 200 faced a slight decline of 0.08%, ending at 7,024.80, with notable losses including Brickworks, plunging 6.42%, and Washington H Soul Pattinson, falling by 6.03%.

Meanwhile, New Zealand's S&P/NZX 50 dropped 1.23% to 11,178.03, with Freightways and Ryman Healthcare witnessing declines of 4.69% and 3.55% respectively.

In the currency realm, the dollar was last down 0.14% on the yen at JPY 149.42 and weakened 0.41% and 0.39% against its Aussie and Kiwi counterparts, to AUD 1.5677 and NZD 1.6817, respectively.

The oil market exhibited a slight dip after its overnight gains, with Brent crude futures last down 0.17% on ICE at $96.39 per barrel and the NYMEX quote for West Texas Intermediate losing 0.16% to $93.53.

Australia retail sales rise marginally; Thailand adjusts benchmark interest rate

In economic news, Australia saw a modest increase in its seasonally adjusted retail sales for August.

While sales did climb, the growth rate was slightly below expectations.

According to data from the Australian Bureau of Statistics, retail sales for August rose by 0.2% compared to the prior month, reaching a total of AUD 35.4bn.

That increment, albeit below the 0.3% forecast by economists in a Reuters poll, still marked a 1.5% hike compared to last year.

Elsewhere, the Bank of Thailand (BOT) took many by surprise as it increased its benchmark interest rate by 25 basis points to 2.5%.

That move contradicted the general expectation for the rate to remain unchanged.

Explaining its decision, the BOT emphasised its commitment to maintain inflation within the stipulated target range of 2% to 3%.

While headline inflation was predicted to stay within that range, expected at 1.6% for 2023 and 2.6% for 2024, the BOT expressed concerns over a potential surge in inflation.

Reporting by Josh White for Sharecast.com.