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Hong Kong’s Hang Seng index led a significant surge in Asia-Pacific markets, climbing nearly 2% in the final hour of trading. This uptick was fueled by strong gains in the shares of major Chinese banks. Investors across the region were closely watching the upcoming U.S. consumer inflation data for insights into the Federal Reserve’s monetary policy direction. Hong Kong’s Hang Seng index rose by 1.86%, China’s benchmark CSI 300 ended 0.95% higher at 3,702.38, Australia’s S&P/ASX 200 added 0.21% to close at 7,103.1, Japan’s Nikkei 225 finished 1.75% higher at 32,494.66, and South Korea’s Kospi wrapped up with a 1.21% gain, closing at 2,479.82. Both the Nikkei and Kospi reached their highest closing levels since September 25.
The major stock indexes faced a decline on Thursday, largely due to rising Treasury yields and concerns over ongoing U.S. inflation. The Dow Jones Industrial Average dropped 0.51%, or 173.66 points, closing at 33,631.21. The S&P 500 experienced a 0.43% decline, settling at 4,376.95, while the tech-heavy Nasdaq Composite lost 0.71%, ending at 13,659.68.
This decline in equities was driven by increased Treasury yields, with the benchmark 10-year rate rising by nearly 11 basis points to 4.707%. The 2-year Treasury yield also increased by more than 6 basis points, trading at 5.06%. These rising yields, which reached a 16-year high recently, contributed to concerns among investors that higher yields might persist, affecting the equity market’s performance.
Gold prices dipped on Thursday, driven by a stronger U.S. dollar and rising Treasury yields after the release of higher-than-expected U.S. consumer prices for September. The concern in the market is that this could prompt the Federal Reserve to maintain higher interest rates.
Spot gold decreased by 0.3% to $1,868.79 per ounce, even though it had reached its highest level since September 27 earlier in the session. U.S. gold futures also settled 0.2% lower at $1,883.
The Labor Department reported that the consumer price index rose by 0.4% in September following a 0.3% increase in August. However, year-on-year consumer prices have eased from their peak of 9.1% in June 2022.
On Thursday, oil prices experienced a volatile session, ultimately reversing early gains. This turnaround was driven by a significant increase in U.S. crude stockpiles, which outweighed expectations that U.S. interest rates had reached their peak.
Brent futures settled up 18 cents, reaching $86.00 per barrel.
U.S. West Texas Intermediate (WTI) crude fell 5 cents, closing at $83.44 per barrel.
During the session, oil prices had initially risen more than $1 a barrel before shifting course.
The above analysis is only for the views of market researchers and is for reference only and is not regarded as a specific investment suggestion.