14/10/2026
Asian stock markets rebounded after two consecutive days of losses, driven by expectations that the Federal Reserve may not need aggressive interest‑rate hikes next year.
The MSCI Asia Pacific Index rose 0.2%, led by technology stocks. The bounce came after semiconductor sell‑offs pushed the benchmark to its lowest close since August on Tuesday. Chipmakers SK Hynix and Samsung Electronics both climbed more than 2% in Seoul trading.
Market sentiment shifted following remarks by John Williams, President of the New York Fed. He stated that he did not foresee additional monetary policy tightening in 2027, though he still viewed one more rate increase this year as appropriate. U.S. stock futures edged higher during early Asian hours.
U.S. Treasury prices largely held Tuesday’s gains, with the benchmark 10‑year yield at 5.22%. Traders are closely watching Wednesday’s U.S. CPI inflation release for further clues on the interest‑rate path.
Elsewhere, U.S. crude oil gained 0.9% toward $95 per barrel, marking its fifth straight daily advance. Fresh escalation of attacks in the Middle East has deepened uncertainty over energy supply recovery in the Persian Gulf. Global benchmark Brent crude rose 0.9% to $106.60 a barrel.
The dollar weakened slightly against most G‑10 currencies, while gold dipped 0.1% to trade just below $4,160 per ounce.
China’s stock market faces the risk of slipping back into a bear market, as growing doubts prevail over prospects for large‑scale government stimulus to shore up investor confidence. The CSI 300 Index has fallen more than 15% from its June peak and stands at its lowest level since August 2025.
India’s equity market is also in focus after Finance Minister Nirmala Sitharaman said she is open to discussions on imposing a stock‑transaction tax, as the country seeks to boost capital inflows.
Meanwhile, U.S. equities have demonstrated resilience amid widespread market worries.
According to FXCG data, as of Tuesday, the S&P 500 had gone 53 consecutive trading days without a 1% single‑day drop — its longest such streak since January 2020.
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