06:40 AM EDT, 10/08/2026 (MT Newswires) -- Asian stock markets retreated on Thursday as rising bond yields and a spike in global oil prices undercut rich valuations in tech shares. Bank issues also faltered.

Hong Kong, Shanghai and Tokyo finished in the red, as did other regional exchanges.

Brent crude oil futures rose 4.3% to $104.50 during Asian market hours. Yields on 10-year US Treasuries tracked near 5.35%, the highest since 2002.

In Japan, the Nikkei 225 opened lower and declined thereafter, finishing off 1.4% as traders backed away AI- and semiconductor-related shares.

The benchmark Nikkei 225 fell 993.60 to 69,042.11, as losing issues outnumbered gainers 164 to 56.

Leading the upside was cybersecurity outfit Trend Micro, up 3.9%, while silicon-wafer maker Sumco declined 5.7%.

In economic news, Japan's service-sector economy watcher's survey index, a polling of front-line workers in restaurants, hotels, taxi services and other trades, rose to 47.0 in September from 46.4 in August, reported the Cabinet Office.

In Hong Kong, the Hang Seng Index opened lower and lost ground, closing down 1.4% as losses in tech shares more than offset strength in property issues.

The broad gauge Hang Seng fell 344.71 to 23,785.79 as losing issues outnumbered gainers 56 to 37. The Hang Seng TECH Index lost 2.9% on the day, while the Mainland Properties Index rose 1.5%.

Leading the upside was China Overseas Land & Investment, gaining 3.8%, while Hua Hong Grace Semiconductor declined 9.2%.

On the mainland, the Shanghai Composite fell 0.8% to 3,811.90, with trading resuming after the Golden Week holiday.

On the other regional exchanges, the S. Korean KOSPI fell 2.6%; the Taiwan TWSE declined 1%; the Australian ASX 200 declined 0.8%; the Singapore Straits Times Index fell 3.5%, and the Thai Set declined 0.9%. In late trading in Mumbai, the Sensex was down 1.4%.

In other news, a sell-off in Singapore bank shares extended on Thursday after JPMorgan Chase (JPM) warned that higher bond yields will undercut Q3 earnings for Southeast Asian lenders, reported The Edge Malaysia.

The MSCI All Country Asia Pacific Index fell 1.8% on the day.

http://www.mtnewswires.com
Copyright © 2026 MT Newswires. All rights reserved. MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.