Taiwan stocks face Treasury yield and Fed hike concerns as market reopens

  • Taiwan’s stock market is set to reopen after the Mid-Autumn Festival holiday amid concerns over U.S. yields and monetary policy.
  • The U.S. 10-year Treasury yield rose to around 5.2%, with one reported peak at 5.22%, near its highest level since July 2007.
  • Markets priced roughly a 66% probability of an October Federal Reserve rate hike after stronger business spending and rising inflation expectations.

Taiwan’s stock market is preparing to reopen after the Mid-Autumn Festival holiday, while record-high U.S. equities face pressure from rising Treasury yields and expectations of further Federal Reserve tightening. The U.S. 10-year Treasury yield rose to around 5.2%, reaching 5.22% in one reported move and remaining near its highest level since July 2007. Markets priced roughly a 66% probability of an October Fed rate hike after stronger-than-expected August capital-goods orders and higher September inflation expectations, while investors awaited the Fed’s preferred inflation gauge and U.S. jobs data.

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