The Nikkei 225 index in Japan is surging with gains of close to 2% or around 1.70%. Meanwhile, another Tokyo index, the TOPIX, after slipping in early trading, picked up pace, rising nearly half a percentage point. The crucial, and highly volatile South Korean index, the KOSPI, is shut on account of the Harvest Festival, Chuseok.
Meanwhile, the GIFT Nifty in India hinted at a major gap-down start of over 150 points, potentially erasing all of the previous day’s gains.
Wall Street incurred major losses as petroleum prices surged and stronger-than-expected United States economic indicators intensified inflation concerns and expectations of further rate hikes.
The Japanese yen, hovering near its lowest point in three weeks, will command attention as Japanese financial markets resume operations.
A Bloomberg report said that New Zealand government bonds declined during the initial phase of Asian trading, whereas Australian bond futures indicated prospective declines, reflecting the broader Treasury market downturn.
Equity-index futures for Hong Kong and Australia suggested downward movement, with United States equity futures remaining relatively stable following the S&P 500’s 0.8% decrease and the Nasdaq 100’s 0.9% decline on Wednesday. South Korean markets remained inactive.
Another media report said that United States petroleum prices increased during preliminary trading, following Brent crude advancing 3.9% to close at $103.08 per barrel. On Wednesday, yields on ten-year Treasury securities escalated 15 basis points to 5.11%, representing the most substantial single-day advancement since the market disruption precipitated by President Donald Trump’s April 2025 tariff implementation.Previously, economic indicators revealed United States mortgage rates had risen to their maximum in over two years, while the S&P Global preliminary United States composite purchasing managers index expanded in September to its maximum since July 2021, demonstrating accelerated expansion in commercial operations.
The market deterioration intensified following an underwhelming $70 billion transaction of five-year securities, elevating the yield beyond 5% for the first time since 2007, concurrent with the dollar appreciating relative to all principal currencies.
Regarding supplementary commodities, bullion fell by as much as 2% to approximately $4,275 per ounce Wednesday as bond yields increased. Elevated interest rates conventionally disadvantage precious metals because they generate no yield.
Wall Street is additionally preparing for a conference between Trump and Chinese President Xi Jinping in Washington on Thursday, accompanied by a reception with prominent United States business executives. Trump communicated to media representatives the preceding week that he anticipated accomplishing “numerous distinct agreements” throughout the gathering.
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