Asian stock markets saw a mostly positive day on Monday, September 21, as interest in microchip manufacturer shares created a boost. Trading was quieter in Japan due to ongoing Silver Week holidays, while oil prices slightly dipped but still remained above $100 a barrel, according to reports from Channel NewsAsia and Reuters.
### Technology Shares Lift Markets
With Japan’s Nikkei index closed for the holidays, futures for the index increased by 0.5%. Meanwhile, South Korea’s tech-heavy index climbed 1.1%, and the broader MSCI Asia-Pacific index (excluding Japan) saw a gain of 0.3%. In the US, futures for the S&P 500 rose by 0.3%, and Nasdaq futures went up by 0.4%. Over in Europe, both the EUROSTOXX 50 and DAX futures increased by 0.2%, while FTSE futures showed little change.
The US dollar remained steady against the yen at 157, following reports that Japanese officials checked currency rates last Friday, leading to a firmer yen.
### Bonds, Interest Rates, and Oil Update
The bond market remained under pressure due to recent selling, with the yield on two-year US Treasury bonds jumping by 36 basis points in the last two weeks, reaching 4.7604%, the highest since mid-2024.
Last week’s signals from the Federal Reserve hinted at more interest rate hikes, with the futures market now estimating a 56% chance of another increase in October. Analysts at Bank of America predict two additional rate hikes by the end of the year, as consumer spending in the US has seen a year-on-year rise of 6.3%.
In the oil market, prices slipped slightly as there are expectations that Saudi Arabia may boost supplies. This comes despite news of a Houthi attack on Riyadh and escalating threats between Iran and the United States. Brent crude oil dropped 0.2% to $103.68 per barrel, while US crude decreased by 0.3%, settling at $100.02. Additionally, reports indicated that Saudi Arabia is working to restore flows through a major east-west pipeline impacted by recent attacks. Vivek Dhar from CBA’s commodities division believes that global oil inventories could run low in the next five to ten weeks.
