On Thursday (24 September, 9:24 AM, GMT+7, Bangkok time), most major indices in the Asia-Pacific exhibited a downward trend as participants closely watched the meeting between Chinese President Xi Jinping and U.S. President Donald Trump. Investors are looking for indications on the future direction of U.S.-China trade relations during Xi’s first official visit to America in over a decade.
Chinese stock benchmarks lost ground following the market open, coinciding with the start of Xi’s trip, while U.S. Treasury Secretary Scott Bessent confirmed earlier that the current trade truce between China and the United States would be extended by two months.
The fixed income market saw a pronounced global selloff, driven by strong U.S. economic figures and weaker-than-expected demand at a Treasury auction. This dynamic pushed Treasury yields to their highest points in nearly 20 years, with the yield on the 10-year Treasury note reaching 5.135%, a level last seen in 2007. Similarly, the yield on the 2-year note rose to 4.947%, its peak since May 2024.
Economic indicators from the U.S. reflected further momentum, with mortgage rates advancing to a two-year high and the S&P Global flash composite purchasing managers index showing its strongest reading since July 2021. These signs of robust growth have heightened expectations for additional action from the U.S. Federal Reserve.
Market pricing, as measured by the CME FedWatch tool, indicates that there is now a more than 68% chance of an interest rate increase at the Federal Open Market Committee’s October meeting—up from around 49% one week earlier.
Separately, U.S.-Iran relations remained tense following comments from Iranian President Masoud Pezeshkian. Speaking at the United Nations General Assembly, Pezeshkian accused both the United States and Israel of contributing to global instability. He defended Iran’s stance by emphasizing the country’s resolve to resist, stating that Iran considers itself a victim of terrorism and will continue to defend its interests.
Japan’s NIKKEI rose by 1.36% to 65,901.18. South Korea’s KOSPI grew by 0.90% to 7,080.92, while Australia’s ASX 200 declined by 0.84% to 8,692.00.
As for stocks in China, Shanghai’s SSEC contracted by 0.48% to 3,917.57. Shenzhen’s SZI lost 1.08% to 13,489.30, and Hong Kong’s HSI decreased by 0.36% to 24,745.70.
The U.S. stock markets edged down on Wednesday as the Dow Jones Industrial Average (DJIA) fell by 0.68% to 51,511.59. NASDAQ slumped by 1.13% to 26,936.03, and S&P 500 dropped by 0.75% to 7,706.03. VIX soared by 6.83% to 15.18.
As for commodities, oil prices settled lower on Wednesday following comments from Iranian President Masoud Pezeshkian reaffirming Iran’s unyielding stance, which came a day after Trump issued warnings about a potential threat against Iran. Brent crude futures closed $3.83 higher, rising 3.86% to reach $103.08 per barrel. U.S. West Texas Intermediate crude finished the session up $1.64, or 1.81%, settling at $92.16 per barrel.
This morning, Brent futures plunged 67 cents, or 0.65%, to $102.41 per barrel, and WTI futures slid 42 cents, or 0.46%, to $91.74 per barrel.
Meanwhile, gold futures dipped by 0.06% to $4,316.00 per Troy ounce.
