Market Review – October 1, 2026 (Morning Session)
1. Asian Equity Markets: Open Lower, Tracking Wall Street & Surging Yields
Opening Moves: Most Asian stock indices opened lower on Thursday morning, following a mixed close on Wall Street overnight, where only the NASDAQ managed to post gains. US 10-Year Treasury Yield Jumps to 5.29%: The yield on the 10-year US government bond jumped again, touching 5.29%. Higher-for-Longer Sentiment: A surge in energy commodity prices has reinforced concerns about cost-push inflation, while rapid AI-driven investment continues to support US economic growth. This combination has led market participants to anticipate an era of higher-for-longer interest rates, raising the cost of borrowing for corporations and consumers.
2. US Inflation PCE Price Index Cools Below Consensus
The release of the Federal Reserve's preferred inflation gauge (for August) showed signs of easing, which could reduce the urgency for the Fed to raise the Federal Funds Rate (FFR) again at its upcoming October meeting:
PCE Price Index (August 2026):
Actual: +0.3% M/M (+3.4% Y/Y) (vs. July: +0.1% M/M | +3.4% Y/Y). Vs. Consensus: Lower than the market estimate of +0.4% M/M (+3.7% Y/Y).
Core PCE Price Index (August 2026):
Actual: +0.2% M/M (+3.0% Y/Y) (vs. July: +0.1% M/M | +3.0% Y/Y). Vs. Consensus: Cooler than the market forecast of +0.3% M/M (+3.3% Y/Y).
3. US Employment & Upward Revision to 2Q26 GDP
ADP Private Payrolls (September 2026): The US private sector added 90,000 jobs, surpassing August's figure of 36,000, indicating resilient hiring activity. Final Reading of US 2Q26 GDP:
US economic growth for Q2 2026 was revised up significantly to 2.2% Q/Q (annualized) from the second estimate of 1.5% Q/Q. Driving Factors: Supported by solid consumer spending and a surge in investment in AI-related technology infrastructure.
1. Asian Equity Markets: Open Lower, Tracking Wall Street & Surging Yields
Opening Moves: Most Asian stock indices opened lower on Thursday morning, following a mixed close on Wall Street overnight, where only the NASDAQ managed to post gains. US 10-Year Treasury Yield Jumps to 5.29%: The yield on the 10-year US government bond jumped again, touching 5.29%. Higher-for-Longer Sentiment: A surge in energy commodity prices has reinforced concerns about cost-push inflation, while rapid AI-driven investment continues to support US economic growth. This combination has led market participants to anticipate an era of higher-for-longer interest rates, raising the cost of borrowing for corporations and consumers.
2. US Inflation PCE Price Index Cools Below Consensus
The release of the Federal Reserve's preferred inflation gauge (for August) showed signs of easing, which could reduce the urgency for the Fed to raise the Federal Funds Rate (FFR) again at its upcoming October meeting:
PCE Price Index (August 2026):
Actual: +0.3% M/M (+3.4% Y/Y) (vs. July: +0.1% M/M | +3.4% Y/Y). Vs. Consensus: Lower than the market estimate of +0.4% M/M (+3.7% Y/Y).
Core PCE Price Index (August 2026):
Actual: +0.2% M/M (+3.0% Y/Y) (vs. July: +0.1% M/M | +3.0% Y/Y). Vs. Consensus: Cooler than the market forecast of +0.3% M/M (+3.3% Y/Y).
3. US Employment & Upward Revision to 2Q26 GDP
ADP Private Payrolls (September 2026): The US private sector added 90,000 jobs, surpassing August's figure of 36,000, indicating resilient hiring activity. Final Reading of US 2Q26 GDP:
US economic growth for Q2 2026 was revised up significantly to 2.2% Q/Q (annualized) from the second estimate of 1.5% Q/Q. Driving Factors: Supported by solid consumer spending and a surge in investment in AI-related technology infrastructure.