Asia stocks slip as rising oil, yields weigh; RBI hikes rates as expected Ayushman Ojha Tue, October 6, 2026 at 11:41 PM EDT 3 min read ^GSPC +0.58% 005930.KS -0.92% CL=F +0.89% SKHY -6.39% US500 Investing.com-- Asian stock markets fell on Wednesday, failing to join an overnight rally on Wall Street that took the S&P 500 and Nasdaq to record highs, as elevated bond yields and renewed gains in oil prices kept investors cautious.
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Market attention was also centred on the Reserve Bank of India's rate hike, its first since February 2023.
The subdued Asian performance came even as U.S. stocks climbed overnight, with the S&P 500 and Nasdaq setting record closing highs. The rally was led by technology and artificial-intelligence stocks.
U.S. stock index futures traded largely unchanged as of 05:20 GMT.
Japan's Nikkei 225 fell 0.6%, while the broader TOPIX index edged 0.4% lower.
South Korea's KOSPI declined 1.4%, with heavyweight chipmaker SK Hynix (KS:000660) falling more than 2%. Samsung Electronics (KS:005930) shares dipped 0.5%.
Investors are cautiously awaiting Samsung and SK Hynix's quarterly results later in October, against very high expectations.
Hong Kong's Hang Seng slipped 0.6%, with the Hang Seng TECH sub-index losing nearly 1%.
Mainland Chinese markets remained closed for the National Day holiday, with trading due to resume on Thursday.
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Investors remained wary of the bond market. The U.S. 10-year Treasury yield remained around 5.3% on Wednesday, while the 30-year yield was above 5.6%, keeping longer-term borrowing costs close to multiyear highs.
Higher yields can reduce the appeal of equities, particularly in emerging markets, while increasing the discount rate applied to future corporate earnings.
Oil prices added to the pressure. Brent crude rose above $101 a barrel and U.S. West Texas Intermediate approached $90 as attacks by Iran-backed Houthi forces in Saudi Arabia heightened concerns about Middle East supplies.
The rise in crude prices revived concerns that higher energy costs could prolong inflation and constrain central banks' ability to ease monetary policy.
The Reserve Bank of India raised its benchmark repo rate by 25 basis points to 5.5% on Wednesday, its first increase in nearly four years, as rising oil prices and broadening inflationary pressures prompted a shift towards tighter policy.
The six-member Monetary Policy Committee voted unanimously for the hike and changed its policy stance to "calibrated tightening", signalling scope for further increases if inflation and growth warrant them, the RBI said.
India's Nifty 50 fell 0.5% with tech shares leading losses.
Elsewhere, Australia's S&P/ASX 200 traded flat, while Singapore's Straits Times Index dropped 1.5%.
Investors were also awaiting the minutes of the Federal Reserve's September meeting later on Wednesday, along with speeches from several policymakers.
Markets have sharply reduced expectations for an October rate hike, with the probability of a 25-basis-point increase now around 20%, although an increase in December remains heavily priced in.
Investors' focus was increasingly shifting to whether strong corporate earnings can offset the drag from higher energy prices and elevated global borrowing costs.
Asia stocks slip as rising oil, yields weigh; RBI hikes rates as expected
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India stocks dip after RBI hikes rates for first time in nearly 4 yrs
