Global Stocks Mixed as Falling US Yields Support Equities, Oil Prices Surge

Asian markets staged a strong rebound on Thursday, led by South Korea, while European equities opened lower as investors assessed the impact of falling US bond yields, higher oil prices and ongoing geopolitical risks.

South Korea’s Kospi surged 5.9% to 6,852.58, recovering sharply after tumbling 5.8% in the previous session amid renewed selling in artificial intelligence-linked stocks. Samsung Electronics jumped 9.5%, while memory-chip maker SK Hynix gained 12.7% after announcing a significant share buyback programme.

Japan’s Nikkei 225 advanced 1.4% to 66,216.79, reversing losses recorded earlier in the week. Japan reported a trade deficit for the third consecutive month in July, although both imports and exports reached record levels. SoftBank Group, a major investor in OpenAI, rose 3.1%.

Other Asian markets also traded higher. Hong Kong’s Hang Seng gained 0.8%, Shanghai Composite rose 0.2%, Australia’s S&P/ASX 200 added 0.3%, while Taiwan’s Taiex and India’s Sensex also advanced.

In Europe, Germany’s DAX declined 0.6%, France’s CAC 40 slipped 0.1% and Britain’s FTSE 100 fell 0.3% at the open.

US equity futures edged lower after the US Treasury said it would at least double planned purchases of longer-term government debt. The announcement pushed bond prices higher and yields lower, easing some pressure on equities.

The US 10-year Treasury yield fell to around 4.65% from 4.71%, while the 30-year yield eased to approximately 5.19%. Japan’s 10-year government bond yield also declined to around 2.85%.

Meanwhile, oil prices rose sharply amid limited progress in US-Iran negotiations. Brent crude climbed 2.2% to $93.61 a barrel, while US crude gained 2.1% to $86.20. The dollar strengthened to 158.53 yen, while the euro traded at $1.1683.