Asian markets mixed after recent oil surge

Asian markets opened mixed on September 25 after oil prices surged, with US and Japanese bond yields hitting multi-year highs amid the ongoing Middle East war. A trade truce between the US and China proved inconclusive, with several unresolved issues creating lingering market risks. Brent Crude prices eased slightly following a sharp increase of more than 3 percent on Thursday, following a two-month extension of the trade truce.

Global stocks had mostly declined on Thursday, as the 10-year Treasury yield reached its highest level since 2007, and the 30-year yield peaked since 2004. Bond yields fluctuated like a see-saw, leaving markets uncertain, according to Kathleen Brooks, research director at XTB. The volatility is expected to persist in commodity and bond markets, particularly due to ambiguous factors such as potential bond crises and the evolving situation in the Iran war.

Despite the uncertainty, Tokyo closed 1.3 percent higher, while Hong Kong fell by 1.3 percent. London and Frankfurt also saw slight gains, while Shanghai, Taipei, and Seoul remained closed for holidays. US President Donald Trump expressed concerns over the weak yen during a bilateral meeting in Washington, and China's Xi Jinping hosted a state dinner at the White House, highlighting the ongoing tensions between the two superpowers.

While the two-month extension of the US-China trade truce offered some relief, key issues like tariffs, agricultural purchases, rare earths, and technology restrictions remained unresolved.