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Two major Asian bourses — the Hang Seng and Taiwan Taiex — closed Thursday’s trade, September 24, lower, tracking a decline on Wall Street overnight. Sentiment remained under pressure as traders ramped up bets on further global monetary tightening after the global bond sell-off intensified, while sharp swings in crude oil prices added inflation concerns. Adding to the uncertainty, investors remained sceptical that a meeting between US President Donald Trump and Chinese President Xi Jinping in Washington would deliver a broader breakthrough, further contributing to market volatility. Hong Kong’s Hang Seng fell 0.3%, remaining below the 25,000 mark for the second consecutive session, while the Shanghai Composite declined 1.2% to 3,888.37, marking its biggest intraday drop in a month. Taiwan’s Taiex also edged 0.28% lower to close at 48,025, paring earlier gains and snapping a six-session winning streak. The decline came as traders booked profits after the index hit a record high a day earlier. The pressure on Asian equities came as global bond markets remained unsettled. The US 10-year Treasury yield steadied at 5.12% in today's session after surging 15 basis points on Wednesday, marking its biggest one-day increase since the turmoil triggered by President Donald Trump’s April 2025 tariff announcement. Weak demand at a five-year Treasury note auction, stronger-than-expected US economic activity, hawkish comments from a Federal Reserve official and elevated oil prices combined to push the 10-year yield above 5% for the first time since 2007. The rise in yields was not limited to the US. Japan’s 10-year JGB yield climbed 8 basis points to 3.055%, its highest level since August 1996. UK Gilts and German Bunds also moved higher, with yields on several European government bonds hitting fresh multi-year highs, CNBC reported. The rise in bond yields coincided with a sharp rebound in oil prices, adding another layer of pressure on global markets. In energy trading, benchmark US crude rose 2.35% to $94.33 a barrel, while Brent crude, the international benchmark, gained 2.77% to $106.94 a barrel. The prospect of higher energy costs colliding with a still-strong US economy is adding pressure to a bond market already rattled by weak auction demand and concerns that interest rates could remain elevated for longer. As Treasury yields surged — pushing the average yield on global government debt to within a whisker of 4% — traders increased bets on further Federal Reserve tightening following last week’s first rate increase since 2023. Swaps now fully reflect expectations for three quarter-point rate hikes over the next year, with significant hedging for a fourth. If realised, that would take the central bank’s target rate into a range of 4.75% to 5%. US inflation has remained stubbornly high, prompting the Federal Reserve to raise its short-term interest rate last week for the first time in three years. Fed Governor Michael Barr said in a speech this week that further hikes “are likely to be needed” to bring inflation back to the Fed’s 2% target. Meanwhile, investors are closely watching the outcome of talks between US President Donald Trump and Chinese President Xi Jinping later in the day at the White House. Discussions are expected to cover a range of issues, including trade, the war in Iran and artificial intelligence. Some analysts remain sceptical about the prospects of major agreements emerging from the meeting, AP reported. Meanwhile, Treasury Secretary Scott Bessent said the two countries had agreed to extend their trade truce by two months, adding another key development for investors to track as markets assess the broader US-China relationship. (With inputs from agencies) Disclaimer: We advise investors to check with certified experts before making any investment decisions. Ksheera Sagar has been working as a Market Research Analyst at LiveMint for the past four years, covering stocks, commodities, and broader financial markets. In this role, he closely tracks daily market movements, corporate earnings, sector trends, and macroeconomic developments. <br><br> He has over a decade of experience in the financial services industry and has previously worked with multiple organisations, including global investment bank J.P. Morgan, bringing strong research experience into the newsroom. <br><br> During his career, he has gained extensive exposure to equity research, market analysis, and financial data interpretation, strengthening his expertise across asset classes and market cycles. <br><br> He is known for his data-driven analysis and crisp, listicle-style market stories that break down complex financial developments across key markets for a wide audience. His strong research skills enable him to write detailed and insightful stories on stocks and sectors, focusing on the underlying factors driving market movements. <br><br> His work combines quantitative insights with clear storytelling, presenting financial developments in a clear and structured manner. Moreover, he enjoys writing multibagger and listicle-style copies. Outside of work, Ksheera enjoys playing the piano and exploring new places. He has a keen interest in travel, music, and continuously learning about global markets and economic trends. 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