22
Asian stock markets rose on Tuesday, October 6, following a technology-led rally on Wall Street that pushed the Nasdaq Composite to a record closing high. Easing oil prices and reduced
expectations of an immediate US interest rate hike supported investor sentiment, although rising US Treasury yields and concerns over European finances kept markets on alert.
The MSCI index of Asia-Pacific shares outside Japan gained 0.2%, while Japan’s Nikkei 225 advanced 0.7%. Nasdaq futures rose 0.2% and SP 500 futures increased 0.1%, reflecting a positive outlook for technology stocks.
Artificial intelligence (AI) remained a major driver of market optimism. Nvidia, one of the biggest beneficiaries of growing AI infrastructure spending, climbed 2.1% to close at a record high, taking its market capitalisation to $5.76 trillion.
Investors are also preparing for the upcoming third-quarter earnings season, which begins next week. Goldman Sachs estimates cited by Reuters indicate that SP 500 companies could report 27% earnings growth for the quarter, with more than half of the increase expected to come from businesses benefiting from AI infrastructure investment.
Despite the gains in equities, US government bond markets continued to face selling pressure. Yields on 10-year and 30-year US Treasury bonds reached their highest levels in 24 years, driven by concerns over inflation and rising government debt.
The 10-year Treasury yield touched 5.3493%, its highest level since 2002, before easing to around 5.31% during Asian trading. The 30-year yield briefly climbed to 5.7029%.
> However, expectations of another Federal Reserve interest rate increase this month have weakened following softer-than-expected US employment data and calls from policymakers for more economic evidence before further tightening. According to Reuters, market-implied expectations of a rate hike in October fell to 23%, from 71% a week earlier.
Brent crude traded near $100 a barrel after falling 1.9% in the previous session. Increased oil exports from the Middle East and commitments by Group of Seven nations to boost supplies helped ease some concerns over energy availability.
Meanwhile, the euro remained under pressure amid concerns over France’s public finances and political uncertainty in Europe. The currency briefly fell to $1.116, its weakest level since May 2025, before recovering to around $1.1215.
Investors have become increasingly concerned about France’s budget position and the possibility of political disputes weakening efforts to control government spending. Uncertainty also increased after Spanish Prime Minister Pedro Sanchez called a snap election.
The US dollar remained firm amid the weakness in the euro and elevated Treasury yields, while gold prices were largely unchanged at around $4,141 an ounce.
The MSCI index of Asia-Pacific shares outside Japan gained 0.2%, while Japan’s Nikkei 225 advanced 0.7%. Nasdaq futures rose 0.2% and SP 500 futures increased 0.1%, reflecting a positive outlook for technology stocks.
Artificial intelligence (AI) remained a major driver of market optimism. Nvidia, one of the biggest beneficiaries of growing AI infrastructure spending, climbed 2.1% to close at a record high, taking its market capitalisation to $5.76 trillion.
Investors are also preparing for the upcoming third-quarter earnings season, which begins next week. Goldman Sachs estimates cited by Reuters indicate that SP 500 companies could report 27% earnings growth for the quarter, with more than half of the increase expected to come from businesses benefiting from AI infrastructure investment.
Despite the gains in equities, US government bond markets continued to face selling pressure. Yields on 10-year and 30-year US Treasury bonds reached their highest levels in 24 years, driven by concerns over inflation and rising government debt.
The 10-year Treasury yield touched 5.3493%, its highest level since 2002, before easing to around 5.31% during Asian trading. The 30-year yield briefly climbed to 5.7029%.
> However, expectations of another Federal Reserve interest rate increase this month have weakened following softer-than-expected US employment data and calls from policymakers for more economic evidence before further tightening. According to Reuters, market-implied expectations of a rate hike in October fell to 23%, from 71% a week earlier.
Brent crude traded near $100 a barrel after falling 1.9% in the previous session. Increased oil exports from the Middle East and commitments by Group of Seven nations to boost supplies helped ease some concerns over energy availability.
Meanwhile, the euro remained under pressure amid concerns over France’s public finances and political uncertainty in Europe. The currency briefly fell to $1.116, its weakest level since May 2025, before recovering to around $1.1215.
Investors have become increasingly concerned about France’s budget position and the possibility of political disputes weakening efforts to control government spending. Uncertainty also increased after Spanish Prime Minister Pedro Sanchez called a snap election.
The US dollar remained firm amid the weakness in the euro and elevated Treasury yields, while gold prices were largely unchanged at around $4,141 an ounce.
