Driven by leading gains in technology stocks, the Nasdaq 100 index hit a record high, lifting Asian equities. Investors appear to have overlooked elevated oil prices and bond yields at multi-decade highs, while losses in US Treasury bonds widened.

The MSCI Asia Pacific Index rose by 0.3%, with stock markets in Hong Kong, Japan and Australia all advancing. Wall Street’s benchmark indices also posted sharp gains previously. Rallies in large-cap names including NVIDIA and Microsoft pushed the S&P 500 close to its all-time high. US stock index futures edged higher during Asia trading hours.

Government bond prices in Australia and New Zealand fell, tracking the slump in US Treasuries. The yield on the US 10-year Treasury note climbed 1 basis point to 5.31%, hovering near its highest level since 2002. The rate-sensitive 2-year Treasury yield rose 2 basis points to 4.83%.

On the other hand, Brent crude extended Monday’s losses, falling nearly 2% to around $100.30 per barrel. Increased crude exports from the Persian Gulf and price cuts by Saudi Arabia signalled looser market supply conditions.

Equity markets have largely brushed off a spike in global bond yields triggered by the Federal Reserve’s rate hike last month, rising energy costs and mounting inflation concerns. Instead, investors are focusing on strong corporate earnings, resilient consumer spending and a surge in AI-related investments, which have jointly propelled benchmark indices higher.

He noted that capital is flowing into companies with strong profitability, low reliance on borrowing and relatively low sensitivity to the broader economic cycle.

Across other commodity segments, gold edged up 0.1% to $4,145 per ounce.

US Treasuries faced renewed pressure on Monday, with long-dated yields climbing to multi-decade highs as traders kept a close eye on the bond market.

Though yields have marched steadily higher since mid-August, investors remain cautious about whether yields have peaked. The economy is expanding amid booming spending on AI infrastructure, and sticky inflation keeps the possibility of further Fed rate hikes alive.

Turning back to equities, market breadth remains one of investors’ top concerns. The share of US stocks trading above their 10-day, 50-day and 200-day moving averages has dropped to the lowest level since March.

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