APAC markets mixed as Treasury yields rise

Asia-Pacific markets traded mixed on Thursday, with investors weighing softer-than-expected United States inflation data against a continued rise in Treasury yields.

By 11:50 am AEST (1:50 am GMT), Australia's S&P/ASX 200 was 1.1% lower, Japan's Nikkei 225 had gained 1.9%, while South Korea's KOSPI 200 was down 0.3%.

Among economic data releases, Japanese business confidence improved in the three months to September, with the Bank of Japan's (BOJ) Tankan survey rising to +24 in September from +22 in June, compared with market expectations for a reading of +25.

Separately, the BOJ's Summary of Opinions from its September meeting showed policymakers saw a need to accelerate the pace of interest rate increases or bring rates closer to the central bank's goal in the near term.

"If signs of an upward deviation in prices are observed, the Bank will need to accelerate the pace of rate hikes," one member was quoted as saying.

"It is desirable for the Bank to bring the policy interest rate closer to the approximate goal relatively soon and ensure there is room for nimble adjustment in either direction, so that it can respond flexibly to unexpected movements", another opinion showed.

In South Korea, exports surged 83.5% year-on-year to a record US$120.9 billion in September, driven by a sharp increase in chip shipments, according to data released on Thursday.

Imports climbed 26% from a year earlier to US$71.09 billion, resulting in a record trade surplus of US$49.85 billion.

In Australia, the seasonally adjusted trade surplus on goods fell by A$856 million to $495 million in August.

Exports increased by $1.707 billion, or 3.7%, driven by non-monetary gold and coal, coke and briquettes, while imports rose by $2.563 billion, or 5.8%, driven by ADP equipment and non-monetary gold.

US benchmarks finished mixed on Wednesday, with the Dow Jones Industrial Average falling 0.9%, the S&P 500 declining 0.3%, while the Nasdaq Composite gained 0.2%.

In commodities, ICE Brent crude rose 1.9% on Wednesday to settle at US$98.03 a barrel, while spot gold fell 0.6% to settle at US$4,156.81 an ounce.

In China, the SSE Composite Index gained 0.3% on Wednesday to 3,842.2, while the CSI 300 rose 0.3% to 4,357.6.

Hong Kong's Hang Seng Index added 0.4% to 24,613.3, while India's BSE Sensex eased 0.1% to close at 72,480.3, its lowest level since April.

European markets finished lower across the board on Wednesday. The UK's FTSE 100 fell 0.3% to 10,606.0, Germany's DAX declined 0.8% to 25,199.2, and France's CAC 40 dropped 0.9% to 7,964.5.