U.S. stocks were weak as rising long-term interest rates weighed on share prices. Japanese stocks, led by the Nikkei 225, outperformed the NY Dow, while the market's overall direction remained uncertain.
The U.S. stock market remained weak. Rising long-term interest rates, along with developments in crude oil prices and concerns about the economy, weighed on the market. On 29 September, employment-related indicators fell short of market expectations, and expectations of further rate hikes dampened investor sentiment. The Nasdaq remained on a downward trend apart from some technology stocks, while the Dow's daily trading range widened.
Long-term interest rates in the U.S. rose temporarily to around 5.30%, and remarks by Federal Reserve officials were also closely watched. This intensified selling pressure on financial and economically sensitive stocks at times, while semiconductor-related stocks also saw some buying on a rebound.
In the Japanese stock market, the Nikkei 225 at times outperformed the NY Dow. Although the index rose from 28 to 30 September, selling emerged later against expectations of further increases in long-term interest rates, ultimately narrowing the gain. Movements in telecommunications and AI-related stocks had a significant impact on the Nikkei 225's contributions.
The rebound in Chinese markets was limited. The Shanghai Composite Index showed signs of recovery, but external factors such as higher crude oil prices and rising U.S. long-term interest rates had a significant impact, and concerns about policy developments remained.
The U.S. ISM manufacturing index, employment data, interest-rate trends and AI-related stocks are expected to remain key market drivers.