Asian stocks mixed as upbeat US data offset by high yields, oil

01/10/2026 05:33 AST

Asian stocks were mixed on Thursday after a largely down day on Wall Street, as positive US economic data was offset by high government bond yields and oil prices. Chip firms led gains in Asia, with Tokyo's Nikkei 225 up 2.4 percent at 68,355.81 at the break. Hong Kong and Shanghai were closed for a holiday.

Analysts described the latest US figures as a "Goldilocks" batch that lifted equities on Wall Street, as traders scaled back bets on a second successive interest rate hike. The personal consumption expenditures (PCE) index, the Federal Reserve's preferred inflation gauge, came in below forecasts at 3.4 percent. The Commerce Department also revised up its estimate for second-quarter economic growth, citing the artificial intelligence investment boom, and private job creation beat expectations.

The data pointed to a healthy economy despite the impact of the Middle East crisis and surging oil prices. Investors cut their expectations of a Fed rate hike on Oct 28: CME's FedWatch tool put the chances of an increase at less than 40 percent, down from more than 65 percent earlier in the week.

"The net effect is broadly supportive of risk assets and materially reduces the probability of an October rate hike," said Chris Osmond of Fifth Third Wealth Advisors.

However, concerns remain about borrowing costs. The yield on 10-year US Treasuries is near its highest level since 2007, and the 30-year yield is at a 24-year high. High oil prices are a key driver, with crude supported by uncertainty in the Middle East even as Saudi Arabia pumps more oil through its partially reopened East-West pipeline.

Both main crude contracts edged down on Thursday after rising around 1 percent the previous day. At around 0230 GMT, Brent for December delivery was down 0.1 percent at $97.93 a barrel, after the November contract closed at more than $103. West Texas Intermediate was down 0.3 percent at $90.11.

In New York, the Dow closed down 0.9 percent and the S&P 500 also fell, though the Nasdaq rose on a tech rally sparked by a strong forecast from chipmaker Micron, which nonetheless warned of narrower margins. In Asia, gains for SK hynix and Samsung lifted Seoul, while Tokyo was boosted by tech firms Kioxia, Advantest and Tokyo Electron, as well as investor SoftBank. Taipei and Singapore also rose, while Sydney, Wellington, Manila and Jakarta fell.

AFP