Asia stocks choppy as elevated yields temper Wall Street-led gains

Investing.com-- Asian stocks were mixed in choppy trade on Tuesday, as a record Nasdaq close overnight offered some support, while elevated U.S. Treasury yields and oil prices limited risk appetite.

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Some Asian equities followed a strong Wall Street session. The Nasdaq rose 1.1% to a record close on Monday, while the S&P 500 gained 0.7% and the Dow rose 0.2%.

U.S. stock index futures traded largely unchanged as of 03:43 GMT.

Japan's Nikkei 225 gained 0.6%, while the broader TOPIX index edged up 0.4%.

Hong Kong's Hang Seng added 0.6%, with the Hang Seng TECH sub-index climbing nearly 1%.

South Korea's KOSPI, however, turned 1% lower after opening higher. Samsung Electronics (KS:005930) and SK Hynix (KS:000660) fell between 1.5% and 3%.

China's onshore financial markets remained shut for the National Day and Golden Week holidays and will resume trading on Thursday, Oct. 8.

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The 10-year Japanese government bond yield rose to 3.122% on Tuesday, reaching its highest since 2022, tracking the overnight rise in U.S. Treasury yields and expectations for further Bank of Japan policy tightening.

The U.S. 10-year Treasury yield touched 5.349% overnight, its highest since 2002, while the 30-year yield reached 5.703%.

Elevated Treasury yields weigh on equities by raising borrowing costs and making bonds more attractive relative to riskier assets, particularly in high-growth technology shares.

Elsewhere, Australia's S&P/ASX 200 rose 0.6%, while Singapore's Straits Times Index edged down 0.2%.

Futures tied to India's Nifty 50 ticked down 0.1%.

Investors were looking ahead to the Reserve Bank of India's policy decision on Wednesday, with markets expecting a 25-basis-point rate hike.

Markets also awaited the minutes of the Fed's September meeting, due on Wednesday, for clues on policymakers' views about inflation and the timing of further rate increases.

Oil prices remained a key risk. Brent crude was around $100 a barrel after falling 1.9% on Monday as Middle East exports increased and the Group of Seven pledged to boost supplies. Investors remained alert to renewed disruptions from the U.S.-Iran conflict.

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