😎 Summer Sale Exclusive - Up to 50% off AI-powered stock picks by InvestingProCLAIM SALE

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.

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.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.