HONG KONG (AP) โ Asian stocks fell on Monday as higher risks of a broader conflict in the Middle East clouded market sentiment and bond yields put further pressure on stocks.
US futures rose while oil prices fell.
Israel announced on Saturday its intention to intensify its attacks on the Gaza Strip in preparation for the next stage of its war against Hamas. Israel's military spokesman has urged residents of Gaza City to head south to ensure their safety.
Benchmark U.S. oil fell 97 cents to $87.11 a barrel. It has been bouncing since the last war between Hamas and Israel began, after jumping from $70 a barrel to over $93 over the summer. It fell 62 cents to settle at $88.75 a barrel on Friday. Brent crude, the international standard, fell 73 cents to $91.43 a barrel.
Chinese stocks fell to a one-year low on Monday morning as foreign investors sold their holdings. The Shanghai Composite Index fell 1.3% to 2,944.83. Hong Kong markets were closed for a holiday, as were those in Thailand.
International investors have been pulling their assets out of Chinese stocks due to simmering geopolitical tensions, difficult economic conditions and a crisis in the real estate industry.
Taiwan's Taiex fell 1.2%.
Shares of Taiwan-based Foxconn Technology Co., a Fortune 500 company known for making Apple iPhones, fell 2.2% after Chinese state media reported over the weekend that the company had been subpoenaed. to registrations by the Chinese tax authorities.
Tokyo's Nikkei 225 index lost 0.6% to 31,079.12 as investors appeared to have little reaction to Japanese Prime Minister Fumio Kishida's announcement that he plans "bold" measures, including a cut in the income tax. income for households affected by inflation and tax breaks for companies, to galvanize the lackluster growth of the world's third largest economy.
Seoul's Kospi lost 0.8% to 2,357.05. Australia's S&P/ASX 200 sank 0.8 percent to 6,844.10.
India's Sensex lost less than 0.3%.
On Friday, Wall Street racked up more losses to close out its worst week in a month. The S&P 500 fell 1.3% for the fourth consecutive decline to 4,224.16. The Dow Jones sank 0.9% to 33,127.28 and the Nasdaq composite fell 1.5% to 12,983.81.
The stock market has been struggling under the weight of the bond market, where the 10-year Treasury yield briefly topped 5% Thursday night for the first time since 2007, according to Tradeweb. High yields make borrowing more expensive for everyone and slow the economy, while dragging down the prices of stocks and other investments.
โIn fact, the trajectory of US Treasuries is not simply a question; is the only question for financial markets,โ Stephen Innes of SPI Asset Management said in a commentary. โUS government bonds are the critical benchmark against which virtually all other global assets are ultimately valued.โ
The 10-year Treasury yield was around 5% early Friday morning. Overall, it has been moving closer to the Federal Reserve's main interest rate, which is already above 5.25%, its highest level since 2001.
The Federal Reserve quickly raised its overnight interest rate in hopes of quelling high inflation, which has dropped from its peak last summer. But higher oil prices threaten to add upward pressure.
SolarEdge fell 27.3% on Friday after the solar technology company lowered its sales and profit expectations for the current quarter. The company blamed order cancellations in Europe due in part to slower-than-expected installation rates.
Other solar energy stocks also fell, including a 14.7% drop for Enphase Energy.
Regions Financial sank 12.4% after reporting a lower-than-expected profit for the latest quarter. Attention has focused on the banking industry beyond its biggest titans. It came under severe pressure earlier this year after high interest rates helped cause three high-profile US bank collapses.
In currency trading, the US dollar rose to 149.90 Japanese yen from 149.87 yen. The euro was worth $1.0574, falling from $1.0600 late Friday.
