Global equity markets retreated on Wednesday, following a downturn on Wall Street and an intensifying sell-off in the international bond market. U.S. futures signaled further weakness, with the S&P 500 future down 0.3% and the Dow Jones Industrial Average future slipping 0.1%.
In Asia, the Nikkei 225 in Tokyo dropped 2.9% to 64,325.64, weighed down by a 6.4% decline in SoftBank Group. South Korea’s Kospi index fell 4% to 6,562.72, pressured by renewed selling of chipmakers, including a 4% drop for Samsung Electronics and a 4.7% slide for SK Hynix. Elsewhere, Hong Kong’s Hang Seng dipped 0.1% to 25,311.21, with retail giant Shein falling 5.2% following its recent trading debut. The Shanghai Composite index lost 1%, Australia’s S&P/ASX 200 fell 1%, and Taiwan’s Taiex dropped 1.7%.
European markets also opened lower, as Britain’s FTSE 100 shed 0.6% to 10,726.68. France’s CAC 40 declined 0.4% to 8,260.77, while Germany’s DAX fell 0.6% to 25,798.01. These losses follow a Tuesday session on Wall Street where the S&P 500 slipped 0.7%, the Dow fell 0.8%, and the Nasdaq composite dropped 1%, despite data showing a slight increase in U.S. job openings for July. Major tech stocks led the decline, with Nvidia down 1.5%, Amazon off 1.9%, and AMD falling 2.4%.
Energy markets remain volatile as the conflict between the U.S. and Iran continues. Brent crude rose 0.1% to $94.90 per barrel, while U.S. benchmark crude gained 0.2% to $90.34. Prices have climbed significantly from the $72 level seen before the war began in late February. Tensions have escalated following further U.S. military strikes and retaliatory missile and drone launches from Iran, keeping the vital Strait of Hormuz largely closed.
Bond yields continued their upward trajectory as investors demand higher returns to compensate for inflation, increased government debt, and geopolitical risks. The yield on the 10-year U.S. Treasury rose to 4.81% from 4.75% on Monday, significantly higher than its January low of 4.20%. The 2-year Treasury yield, a key indicator for Federal Reserve policy, climbed to 4.40% from 4.34%, up from roughly 3.50% in early 2026.
In Japan, the 10-year government bond yield reached 3.02% early Wednesday, marking its highest level since 1996 and rising from 2.94% on Monday. Currency markets saw the U.S. dollar weaken to 159.84 Japanese yen from 160.17 yen, while the euro slipped to $1.1571 from $1.1593. The report also notes that the Japanese multinational investment holding firm which invests in OpenAI, fell 6.4%, market heavyweight SoftBank Group. The report also notes that the Shanghai Composite index slid 1% to 3,941.39. The report also notes that australia’s S&P/ASX 200 fell 1% to 8,978.40. The report also notes that among some of the biggest decliners, Nvidia dropped 1.5%, Amazon gave up 1.9% and Advanced Micro Devices, or AMD, fell 2.4%. The report also notes that and Iran have worsened worries over energy supplies.
Comments