Asian markets slip as US yields peak and oil prices climb
Asian equities mostly declined on Tuesday after Wall Street losses, while US Treasury yields hovered near two-decade highs and oil prices rose on Middle-East tensions.
Wall Street losses spilled over to Asian markets on Tuesday, prompting declines across most regional indices. Japan's one outlet 225 dropped 1.2% to around 65,115, South Korea's Kospi fell 0.6% to roughly 6,848, and Hong Kong's Hang Seng slipped 0.5% to about 24,516. US Treasury yields steadied after hitting a two-decade peak, with the 10-year rate near 5.25%.
Oil prices climbed 1.8% to just under $100 a barrel as talks between the United States and Iran stalled and concerns grew over a possible reopening of the Strait of Hormuz. In China, the Shanghai Composite rose modestly after state media reported the State Council was reviewing ways to improve macro-policy effectiveness. Meanwhile, shares of fast-fashion retailer Shein on the Hong Kong exchange fell sharply after reporting a steep profit decline, and Australia's ASX 200 inched up 0.1%.
Why it matters
The moves signal how US rate expectations and Middle-East geopolitics are influencing Asian equity performance.
How this story developed
- Sep 2 Diesel hits $5.68 per gallon, highest since 2022, as Trump urges price cuts
- Sep 22 Trump told reporters he wants to stop sending diesel abroad, citing the surge in diesel costs driven by conflicts in Iran and Ukraine. Treasury Secretary Scott Bessent said the administration is reviewing whether a full or partial ban is feasible. Republican Senate hopefuls, including Ashley Hinson, have urged the government to adopt the ban to ease price pressures on Americans.
- Sep 23 Rural GOP lawmakers have publicly demanded action on diesel exports ahead of the November election.
- Sep 24 President Trump announced support for a diesel export ban.
- Sep 24 Gas storage levels are now reported at about 69% of capacity, below the usual seasonal target.
- Sep 24 Iran’s president publicly rejected any surrender to the United States at the UN.
- Sep 25 Refinery output shifts and refinery strikes have created a measurable shortfall in bunker‑fuel supply for the third quarter.
- Sep 26 The European Union has asked the administration to keep U.S. diesel exports flowing amid the price surge.
- Sep 27 The yen rose about 0.8% to 157.65 per dollar after Finance Minister Satsuki Katayama highlighted possible coordinated intervention.
- Sep 27 The Saudi pipeline across the Arabian Peninsula was closed after an attack in Iraq, adding to the blockage of the Strait of Hormuz.
- Sep 28 Asian equity markets opened with restraint on Monday as oil prices surged amid lingering US-Iran tensions, while higher bond yields added pressure.
- Sep 28 Oil prices spiked sharply, pushing bond yields higher and prompting mixed moves in Asian equities.
- Sep 29 Trump turned down Iran’s peace proposal at the United Nations.
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