Asia report: Stocks mostly lower as Treasury yields, oil rise

29th Sep 2026 10:49

(Sharecast News) - Asian stocks finished mostly lower on Tuesday as rising US bond yields and oil prices dampened sentiment, though Australia's benchmark index gained after a rate hike and mainland Chinese shares rose on the back of government measures to support the property markets.

Auto and steel stocks were among the day's worst performers, along with shares in the tech sector, while Shein tanked after quarterly results from the fast fashion group disappointed.

Tokyo's Nikkei 225 fell 0.6%, the Hang Seng in Hong Kong fell 0.5%, while Seoul's KOSPI and Singapore's STI both fell 0.3%. However, Sydney's S&P/ASX 200 and the Shanghai Composite bucked the trend, rising 0.3% and 0.2% respectively.

"Global equities slipped to their lowest level in a week as rising oil prices and renewed Federal Reserve tightening expectations pushed bond yields back toward cycle extremes," said Patrick Munnelly, partner of market strategy at Tickmill Group.

"The market tone remains dominated by the same uncomfortable macro mix: expensive energy, elevated yields, a stronger dollar and narrowing tolerance for valuation risk."

Front-month Brent crude futures rose 1.4% to $106.72 a barrel amid ongoing diplomatic efforts between the US and Iran. Officials from the two nations reportedly held separate talks with mediators on Monday despite US president Donald Trump's rejection of a truce plan that would reopen the Strait of Hormuz.

US bonds rebounded slightly on Tuesday after a sell-off on Monday sent the 10-year Treasury yield to 5.274%, its highest since June 2007, while the 30-year yield jumped to a 2002 high of 5.583%.

In equity news, Shein tanked 11% after posting a 67% slump in quarterly adjusted profits due to higher shipping costs and weaker European sales. The stock, at HKG31.50, is now 35% lower than its IPO price at the start of the month.

Industrial stocks were broadly weaker, including Toyota Motor, Nippon Steel, LG Energy Solution and Hyundai Motor.

In other news, Australian stocks advanced after the country's Reserve Bank lifted interest rates to their highest level in 15 years and warned more rises could be on the way if inflationary pressures persisted.

The RBA hiked its cash rate by 25 basis points to 4.6%, its fourth increase of 2026. The board said the decision was unanimous and signalled it was prepared to tighten policy further if needed to return inflation to target.

Meanwhile, Chinese property stocks performed well after Beijing pledged further measures to support the property sector, boosting hopes of stronger policy backing for the struggling real estate market. Notable risers included China Vanke, Longfor, China Resources Land, China Overseas Land and Country Garden.