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Asian Stock Markets Tumble as US Bond Yields Soar to 16-Year High

Asian stock markets experienced a sharp decline this morning as US government bond yields surged to their highest level in 16 years, triggering concerns among investors across the region.

In Thailand, the Stock Exchange of Thailand (SET) faced headwinds throughout the trading session, eventually closing at 1,451.25 points. This marked an increase of 3.95 points or 0.27%. The SET had to grapple with the relentless rise in US government bond yields, which reached their peak for the year. Additionally, the Thai baht’s continued depreciation, compounded by the recent incident at Siam Paragon, added to the market’s downward pressure. The Thai stock market experienced a significant dip during the initial period; however, it displayed signs of recovery as investors started to re-enter the market.

The South Korean Composite Index (KOSPI) witnessed a sharp decline, plummeting to a six-month low of 2,405.69 points. The index was down by 59.38 points or 2.41%. Investors in South Korea were notably selling off technology stocks in response to growing concerns that the Federal Reserve (Fed) might maintain high-interest rates for an extended period. These worries were fueled by the revelation of higher-than-expected job openings in the United States.

In Hong Kong, the Hang Seng Index closed lower at 17,195.84 points, registering a decline of 135.38 points or 0.78%. Investors in Hong Kong were also troubled by the possibility that the Federal Reserve (Fed) could opt for an extended period of high-interest rates following the release of robust job opening figures in the United States.

Tokyo’s Nikkei Index extended its losses for the fifth consecutive trading day, concluding at 30,526.88 points. This marked a decrease of 711.06 points or 2.28%. The job opening data from the United States heightened concerns in the market that the Federal Reserve (Fed) might opt to maintain elevated interest rates for a prolonged duration.

Meanwhile, the Australian stock market experienced a downward trajectory, with the S&P/ASX 200 closing at 6,890.20 points, down 53.20 points or 0.77%. The All Ordinaries Index also declined, closing at 7,082.20 points, a decrease of 58.80 points or 0.82%. These movements aligned with the direction of the Dow Jones index in the United States, which faced significant declines following stronger-than-expected labor data. Investors are becoming increasingly concerned that the Federal Reserve (Fed) may decide to raise interest rates once again, contributing to the market’s unease.

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