As trading began in European markets, Japan's Nikkei 225 index reached 65,883.41 points, indicating a 1.3 percent increase. This growth occurred due to chip manufacturers' focus on new opportunities in artificial intelligence. In contrast, Australia's S&P/ASX 200 fell by 0.7 percent to 8,700.50 points, while Hong Kong's Hang Seng index decreased by 0.5 percent to 24,715.95 points. The Shanghai Composite index also dropped by 0.8 percent to 3,902.33 points. Trading in South Korea was halted due to the Chuseok harvest holiday.
Energy Market Volatility
In the energy market, the price of U.S. benchmark crude oil reached $91.40 per barrel, reflecting a decrease of 0.82 percent. Meanwhile, Brent crude, the international benchmark, fell by 0.83 percent to $102.22 per barrel. The price of Brent crude remains above about $72, which was recorded before the onset of the war with Iran. There are concerns that the war in the Middle East may lead to a reduction in oil supply. Talks with mediators between U.S. and Iranian officials are ongoing, but no tangible results have emerged so far.
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Pressure on U.S. Bond Market
In overnight trading, Wall Street faced pressure from the U.S. bond market. The S&P 500 index fell by 0.8 percent to 7,706.03 points. The Dow Jones Industrial Average dropped by 352 points, or 0.7 percent, to 51,511.59 points, and the Nasdaq Composite index also fell 1.1 percent from its all-time high. The yield on 10-year U.S. Treasury bonds surged from 4.96 percent to 5.10 percent, indicating significant pressure in the bond market. This increase in yields could put pressure on stock prices and other assets, raising borrowing costs for businesses.
In fact, Wednesday's surge briefly pushed the yield on 10-year bonds to about 5.14 percent, a level not seen since 2007. Concerns about inflation in the U.S. have risen, especially following the release of a report indicating the strongest growth in business activity in over five years. The U.S. Federal Reserve raised its short-term interest rate last week for the first time in three years. Michael Barr, a member of the Federal Reserve Board, has stated that further increases will likely be necessary to reach the 2 percent inflation target.
In the currency market, the value of the U.S. dollar against the Japanese yen decreased from 158.30 yen to 157.94 yen. Each euro was traded at $1.1382, showing little change from $1.1388. Overall, the S&P 500 index fell by 58.61 points to 7,706.03 points, and the Dow Jones dropped by 352.10 points to 51,511.59 points. The Nasdaq Composite index also declined by 308.24 points to 26,936.04 points.
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