Stocks slip in Asia as oil and yields climb
SPY•Asian shares were mostly lower as Brent crude rose 2.7% to $107.16 a barrel and bond yields climbed on inflation concerns and expectations for further Federal Reserve rate hikes.
1. Oil and rate concerns
Markets were mostly lower on Monday as oil prices rose amid doubts that the United States and Iran would reach a truce soon. Brent gained 2.7% to $107.16 a barrel, while U.S. crude rose 1.9% to $94.16.
2. Asian shares weaken
Japan's Nikkei was flat, South Korea's market fell 2.0% and Chinese blue chips slid 1.9% to a one-year low. Chinese shares were pressured after U.S. lawmakers introduced legislation to bar the federal government from using Chinese-made components in sensitive systems at AI data centers; August data also showed industrial profit growth slowing.
3. Yields move higher
The 30-year U.S. Treasury yield rose to 5.5173%, near its highest since 2004, while two-year yields have gained 55 basis points this month. Markets imply a 68% chance of another Fed hike in October. U.S. payrolls data due Friday are forecast to show an 85,000 increase, with unemployment expected to remain at 4.1%.
