Asian stock markets weakened for the second consecutive day, indicating that the initial rally that had been "speedy" at the start of the year is starting to lose steam. At the same time, US government bonds (Treasuries) maintained their gains after rising in the US trading session, driven by mixed US economic data.
In Asia, Japanese and South Korean stocks opened lower. In the US, global stock indexes and the S&P 500 both recorded their first declines in 2026 on Wednesday, signaling that market optimism is starting to wane. Interestingly, Samsung fell 1.5% despite reportedly seeing a more than triple jump in quarterly profits to a record, driven by demand for AI servers.
In the bond market, the 10-year Treasury yield fell about 3 bps to 4.15% after data showed signs of weakness in US employment. This maintained speculation that the Fed still has room to cut interest rates at least twice this year. After falling for the first time this week, gold and silver held steady.
Analysts believe that overnight's mixed data has made market movements less smooth, and risk-on optimism is starting to be tested by geopolitical uncertainty and a shaky global economic outlook. This week is also packed: Friday brings the release of US payrolls, along with the Supreme Court's ruling on President Donald Trump's global tariffs.
Geopolitical factors continue to be in the spotlight: the US seized two oil tankers sanctioned in an energy quarantine against Venezuela, Europe rallied to support Denmark as Trump reiterated threats regarding Greenland, and China launched an anti-dumping investigation into key chipmaking materials from Japan. In commodities, copper fell from a record high and other industrial metals also fell due to profit-taking, while oil edged up amid intensifying US action regarding Venezuela.
Key Points (5 Points):
- Asian markets fell for two days, the early-year rally starting to "run out of gas."
- The S&P 500 and global stock indices recorded their first declines in 2026.
- The US 10-Year yield fell to 4.15%, maintaining hopes of a Fed rate cut.
- Geopolitics heats up: Venezuela (tanker seized), Denmark–Greenland, China–Japan.
- Commodities mixed: industrial metals correct, oil rises slightly, gold and silver stable. (asd)
Source: Newsmaker.
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