JCI Not Alone as Most Asian Markets Weaken
The Indonesia Composite Index (JCI) continued to struggle in the red during the first session of trading on Tuesday (29/09/2026), closing down 12.86 points or 0.21% at the 6,135 level. At one point, the JCI even touched a low that saw it plummet by 2%.
The JCI was not alone in this decline, as most stock exchanges in the Asia-Pacific region also moved lower. Japan’s Nikkei 225 was among the most pressured; as of 14:03 Tokyo time, the index fell 904.18 points or 1.37% to 64,973.44. In South Korea, the KOSPI index also corrected significantly, dropping 73.88 points or 1.07% to 6,815.86.
In Hong Kong, the Hang Seng Index weakened by 179.80 points or 0.73% to 24,462.71. The Australian market recorded a lighter correction, with the S&P/ASX 200 down 8.40 points or 0.10% to 8,671.30. In Singapore, the Straits Times Index fell 27.15 points or 0.47% to 5,701.87.
A different situation was observed in mainland China, which showed resilience. The Shanghai Index rose slightly by 0.238 points or 0.01% to 3,823.859, while the Shenzhen Component Index strengthened by 16.523 points or 0.13% to 12,875.276.
This movement in Asian stock markets occurred amidst the continued rise in US government bond yields. Investors are concerned that persistent inflation could prompt the Federal Reserve to raise interest rates again.
The 10-year US Treasury yield closed above 5.2%, approaching levels not seen since 2007. Meanwhile, the 30-year bond yield breached 5.56% and is trading near levels last seen in 200cap4.
“Despite fairly broad economic strength, equity markets appear concerned about the potential impact of future interest rate hikes, with daily interest rate movements increasingly driving overall market performance,” said Brent Schutte, Chief Investment Officer at Northwestern Mutual Wealth Management, in a post.
According to Schutte, rising interest rates create both opportunities and challenges for investors. Amid concerns over rising yields, bonds are considered to offer a more attractive entry point than any period in nearly 20 years, assuming the Federal Reserve can keep inflation under control.
On Tuesday, investors will closely monitor several US economic data points that could influence Treasury yield movements. US consumer confidence data for September is scheduled for release at 10:00 local time, alongside job openings data and the August labour turnover survey.
Wall Street traders are also watching developments regarding AMD after the chip company announced the US$8.2 billion acquisition of AI firm World Labs. AMD shares were recorded moving slightly after regular trading ended.
In the United States, Dow Jones Industrial Average futures rose slightly by 19 points. Meanwhile, S&P 500 and Nasdaq-100 futures were trading just above flat levels.
During regular trading, the Dow Jones Industrial Average plunged by more than 300 points. The S&P 500 and Nasdaq Composite both fell by 0.8% and 0.9%, respectively.