Asia-Pacific markets dropped on Thursday, following declines on Wall Street as investor sentiment turned negative. The primary concern was the potential impact of a new U.S. budget bill that could significantly increase the country’s debt levels.
Market Performance Across the Region
Japan’s benchmark Nikkei 225 fell 0.84%, closing at 36,985.87, while the Topix index lost 0.58%, finishing at 2,717.09. South Korea’s Kospi slipped 1.22% to 2,593.67, and the small-cap Kosdaq dropped 0.82% to close at 717.67. Australia’s S&P/ASX 200 fell 0.45%, ending the trading day at 8,348.7. In Hong Kong, the Hang Seng index slipped 1.19%, closing at 23,544.31, while mainland China’s CSI 300 declined slightly by 0.06% to 3,913.87.
U.S. Market and Treasury Yields Impact
Futures in the U.S. were flat overnight following a large sell-off on Wall Street. The declines came as worries about the growing deficit intensified. Futures on the Dow Jones Industrial Average dipped 60 points, with S&P 500 futures and Nasdaq 100 futures barely moving.
On Wall Street, the three major indices closed lower, driven by a surge in Treasury yields. The Dow Jones Industrial Average dropped 816.80 points, or 1.91%, to 41,860.44. The S&P 500 fell 1.61% to 5,844.61, and the Nasdaq Composite slid 1.41% to 18,872.64. The 30-year Treasury bond yield reached 5.09%, the highest level since October 2023, while the 10-year Treasury note yield stood at 4.59%.
