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Rising U.S. Treasury yields hit 16-year peak, Japanese exporters and energy stocks feel the pinch

EditorOliver Gray
Published 2023/10/03, 07:44
© Reuters.
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The U.S. 10-year Treasury yield has surged to a notable 16-year high above 4.7%, as observed by Fed's Michelle Bowman and Michael Barr on Tuesday. This significant increase is having a ripple effect across the global markets, causing the yen to depreciate and impacting Japanese exporters such as Toyota (NYSE:TM) and Mazda.

According to Nomura's Maki Sawada, the depreciation of yen has a direct influence on Japanese exporters who have been feeling the pressure from this shift in currency dynamics. The specifics of how these companies are affected were not detailed in the context provided.

In tandem with these developments, crude oil prices experienced a 2% drop overnight. This fall led to a subsequent dip in energy shares, with companies like Inpex (TYO:1605) and JGC Holdings witnessing declines of 6.22% and 5.15% respectively.

Despite the downward trend affecting certain sectors, tech stocks appeared to buck the trend on Tuesday. Companies such as LY Corp and Recruit Holdings saw their share prices increase by 1.21% and 0.81% respectively, buoyed by an outperformance of Nasdaq. The exact factors contributing to Nasdaq's outperformance were not specified in the context provided.

This series of events underscores the interconnectedness of global markets and how changes in one sector or region can have far-reaching impacts across different industries and countries.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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