Investing.com - Equity markets across Asia Pacific are expected to open lower on Monday following last week's negative performance on Wall Street, as market participants closely watch tensions in the Middle East.
By 10:00am AEDT (11:00pm GMT) the S&P/ASX 200 was down 64 points or 0.9% to 6762.9.
The U.S. stock market experienced a significant decline this fall, as the S&P 500 entered a correction and recorded its worst decline of the year. The broad market index fluctuated throughout the day before closing 0.5% lower, marking a decline of more than 10% from its recent peak. The decline was partly due to declines in Chevron Corp (NYSE:CVX) and JPMorgan Chase & Co (NYSE:JPM), which contributed to the stock index falling 367 points or 1.1%. The Dow Jones Industrial Average marked its lowest close since March.
The NASDAQ Composite gained a slight 0.4%, despite closing well below its session high. The tech-heavy index entered a correction at the start of the week and has seen three consecutive weeks of declines.
October saw gloomy market sentiment as investors digested earnings reports from some of America's largest companies amid a severe bond sell-off. Yields on 10-year Treasury bonds exceeded 5% for the first time in 16 years early Monday morning, drawing investors' attention all week. It was steady at 4,846% on Friday.
This rapid rise in bond yields has caused volatility across markets, with the S&P 500 and Dow Jones Industrial Average set to end October with three consecutive months of losses. - the worst period since March 2020.
In commodity markets, Brent crude oil fell 1.1%, while gold fell 0.2%.
Chinese shares closed higher, led by pharmaceuticals and consumer services stocks. Encouraging data showing the country's industrial profits grew for a second straight month in September may have boosted sentiment, showing signs of a stabilizing economy amid policy support increase.
Hong Kong shares also closed higher, driven largely by real estate and technology stocks. The benchmark Hang Seng index rose 2.1% with the Hang Seng Tech Index adding 2.5%. China Evergrande (HK:3333) and Shimao Group were among the biggest gainers, up 6.3% and 5.45% respectively.
Japan's Nikkei 225 index rose 1.3% to close at 30991.69 as a rise in U.S. stock index futures could lead to improved risk appetite. India's benchmark Sensex index rose 1.0% to close at 63782.80, tracking gains across most regional stock markets.
European stocks traded mixed ahead of an expected slightly lower open on Wall Street, although Asia was in positive territory. The STOXX 600 fell 0.2% and the CAC 40 fell 0.8%, although the DAX rose 0.3%. The FTSE 100 closed down 0.9%.
