Asia Stocks Climb as US Yields Hold Near Decade Highs
As of 2026-10-06 17:00 SGT
Key points
- The Nikkei 225 closed up 1.05% at 70,684, extending its advance.
- The Hang Seng also closed higher at 24,281 (+1.29%), with bargain-hunting in tech and bank names.
- The US 10-year yield held at 5.311% (+3.4bp), near multi-decade highs, as the global bond sell-off that has dogged markets for weeks persists.
- USD/JPY is steady at 158.21 (+0.21%) after BOJ Governor Ueda said inflation is nearing the 2% target and a December rate hike stays firmly in play; EUR/USD has ticked up to 1.1245 (+0.20%) but remains close to this week's 17-month low.
- WTI crude extended Oct 5's roughly 2% drop, falling 1.65% to $87.95 and breaking below yesterday's $88.74 low, while gold firmed 0.55% to $4,179.60.
Market snapshot
| Instrument | Level | Change |
|---|---|---|
| USD/JPY | 158.21 | +0.21% |
| EUR/USD | 1.1245 | +0.20% |
| Nikkei 225 (close) | 70,684 | +1.05% |
| Hang Seng (close) | 24,281 | +1.29% |
| Dow futures | 51,851 | +0.57% |
| S&P 500 futures | 7,845.75 | +0.25% |
| Nasdaq 100 futures | 31,394 | +0.24% |
| Gold futures | 4,179.60 | +0.55% |
| WTI crude | 87.95 | -1.65% |
| Bitcoin | 86,021 | +0.32% |
| US 10-yr yield | 5.311% | +3.4bp |
Foreign exchange — Yen steady, euro still pressured
USD/JPY held steady at 158.21 (+0.21%), staying within yesterday's 157.76-158.25 range as BOJ Governor Ueda's comments—flagging inflation nearing 2% while keeping a December hike in play—did little to shift the pair. The euro, after touching a 17-month low against the dollar earlier this week on French fiscal and political turmoil, ticked up modestly to 1.1245 (+0.20%) but remains close to those lows. Heading into tonight's US session, USD/JPY looks poised to stay range-bound while the euro's bounce remains fragile.
Equities — Records extend into Asia's close
US futures point higher after the Nasdaq closed at a fresh record overnight, with AMD's market capitalization crossing $1 trillion as CEO Lisa Su said AI demand continues to outpace supply. Dow futures are up 0.57% to 51,851, S&P 500 futures +0.25% to 7,845.75—just shy of 7,850—and Nasdaq 100 futures +0.24% to 31,394, still extending gains. Asia closed firmer into the open, with the Nikkei 225 up 1.05% to 70,684 and the Hang Seng up 1.29% to 24,281, both still rising. Record highs remain the path of least resistance heading into the NY open.
Macro — Bond sell-off persists, light calendar tonight
The US 10-year yield is holding at 5.311% (+3.4bp), near multi-decade highs, as the global bond sell-off that has dogged markets for weeks shows no sign of easing. In Europe, the OAT-Bund spread blowout is increasingly being framed as France's own "Liz Truss moment," with bond-market pressure forcing a fiscal policy rethink in Paris even as European equities extend their rebound and French assets continue to lag. BOJ Governor Ueda said underlying inflation is nearing the central bank's 2% target, keeping a December rate hike firmly in play. Tonight's US calendar is light, with focus staying on the Hormuz tanker standoff and bond-market volatility ahead of the Oct 8 FOMC minutes. Into the NY open, the bond sell-off—not any single data point—remains the dominant cross-asset driver.
Commodities — Oil extends slide, gold steadies
WTI crude extended Oct 5's roughly 2% drop, falling 1.65% to $87.95 and breaking below yesterday's $88.74 low. Gold firmed 0.55% to $4,179.60, holding within yesterday's $4,150.40-$4,198.90 range. Oil's break of yesterday's low contrasts with gold's steadier footing heading into tonight's session.
Geopolitics — Red Sea and Hormuz still in focus
Yemeni government forces, backed by the Saudi-led coalition, reclaimed the Red Sea port city of Mokha from Iran-backed Houthi forces in a major counteroffensive, CNBC reported. Iran is expected to respond today to a US proposal on the Hormuz standoff, while Washington has moved long-range B-1 bombers out of the UK, with Trump citing a specific threat. These Middle East flashpoints remain a source of two-way risk for oil heading into tonight's session.
Upcoming events
| Time (SGT) | Region | Event | Focus |
|---|---|---|---|
| 10/06 22:00 | CA | Ivey PMI (forecast 65.2) | Near-term CAD catalyst |
| 10/08 02:00 | US | FOMC Meeting Minutes | Gauge how committed the Fed sounded on further hikes |
| 10/08 16:30 | US | FOMC Member Waller Speaks | Watch for hints on the pace of additional tightening |
| 10/08 20:15 | UK | BOE Gov Bailey Speaks | Any steer on UK policy and inflation outlook |
| 10/08 20:30 | US | Unemployment Claims (forecast 200K) | Read on labor market resilience |
| 10/09 20:30 | CA | Employment Change (forecast 6.2K) | Swing factor for CAD |
| 10/09 20:30 | CA | Unemployment Rate (forecast 6.5%) | Input for BoC's next move |
| 10/09 22:00 | US | UoM Consumer Sentiment (forecast 47.6) | Check whether sentiment is bottoming |
| 10/09 22:00 | US | UoM Inflation Expectations | An upside surprise would feed Fed-hike bets |