Asian stock markets showed mixed results as renewed expectations emerged that U.S. interest rates might remain elevated for some time.
Japan’s benchmark Nikkei 225 fell by 0.5% in afternoon trading, settling at 38,296.69.
In Australia, the S&P/ASX 200 saw a slight increase of less than 0.1%, reaching 7,618.50. Meanwhile, South Korea’s Kospi showed minimal movement, decreasing slightly to 2,608.93.
The Hang Seng index in Hong Kong declined by 0.2% to 16,219.84, whereas the Shanghai Composite in China rose by 1.1% to 3,040.72.
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This varied market response followed comments from Federal Reserve Chairman Jerome Powell at a recent event, where he mentioned that the central bank is hesitant to reduce its main interest rate—currently at its highest since 2001—until it sees more definitive signs that inflation is consistently moving towards its 2% target.
In the U.S., the Dow Jones Industrial Average increased by 0.2% to 37,798.77. Conversely, the S&P 500 dropped by 0.2% to 5,051.38, and the Nasdaq Composite index rose slightly by 0.1% to 15,865.25.
Yields on 10-year U.S. Treasury bonds reached a new five-month high due to fading hopes for a Federal Reserve policy ease within the year and strong economic data from China, which reignited inflation concerns. These yields settled at 4.66%, up from 4.63% the previous Monday.
