Asian shares decline under pressure from rising bond yields and surging oil prices
Asian shares declined on Thursday amid pressure from increasing bond yields and rising oil prices, following a retreat from recent record highs on Wall Street. The yield on the 10-Year U.S. Treasury stayed near a multi-decade high after minutes from the Federal Reserve's latest meeting indicated more interest rate hikes in 2023.
Stocks in Japan, South Korea, Hong Kong, and Australia all fell, while the Shanghai Composite index dipped slightly. The U.S. Federal Reserve raised rates for the first time in three years in September, with the Federal funds rate reaching 3.75% to 4.00%. Inflation remains above the Fed's 2% target. Rising bond yields negatively impact stock prices due to higher borrowing costs for companies and consumers.
The global energy shock from the Iran war has driven up oil prices, while the U.S. national debt continues to grow. The yield on the U.S. 10-Year Treasury reached about 5.31% as of Wednesday, its highest since 2002. Oil prices have rebounded due to uncertainty over global crude supplies.
Written by urgent.news from Winnipeg Free Press's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
