Global markets: Asian stocks slip, Wall St and bonds benefit from oil skid
SPY•Asian shares fell as concerns over AI funding needs weighed on technology stocks, while lower oil prices supported bonds and U.S. stock futures. China’s economy grew 4.5% year over year in the third quarter, slightly ahead of forecasts, and retail sales beat expectations.
1. Asian markets decline
Asian shares slipped on Monday as concerns about the funding needs of AI weighed on confidence ahead of a busy week for earnings. Japan’s Nikkei fell 1.2%, South Korea’s market lost 0.4% and Taiwan’s fell 1.4%; the broadest index of Asia-Pacific shares outside Japan eased 0.6%.
2. Oil and bonds
Oil prices fell after U.S. President Donald Trump waived some sanctions on Russia, though he later said a final decision had not been made. Brent crude fell 1.7% to $107.95 a barrel, while U.S. crude lost 0.8% to $100.62. Ten-year Treasury yields dropped 4 basis points to 5.0525%, while S&P 500 futures rose 0.7% and Nasdaq futures gained 1.0%.
3. China data and earnings
China’s economy grew 4.5% year over year in the third quarter, slightly ahead of forecasts. Retail sales rose 1.1%, beating expectations, while industrial output increased 5.5%, in line with forecasts. Investors were also looking ahead to earnings from companies including Meta, Lam Research, Texas Instruments and Tesla.
