Asian markets under pressure: oil surges, U.S. yields rise
Major Asian stock markets ended the May 15, 2026 trading session mostly in negative territory, pressured by rising U.S. Treasury yields, renewed geopolitical tensions in the Middle East and uncertainty surrounding the Federal Reserve’s next monetary policy moves.
Investor sentiment was mainly hit by the surge in the U.S. 10-year Treasury yield, which climbed to multi-month highs following stronger-than-expected American macroeconomic data and renewed inflationary pressures linked to soaring oil prices. Brent crude moved above $107 per barrel, supported by tensions around the Strait of Hormuz and fears of potential disruptions to global energy supplies.
On the geopolitical front, markets also closely monitored U.S. President Donald Trump’s visit to Beijing and his meeting with Chinese President Xi Jinping. Although the tone of the talks appeared more conciliatory compared to recent months, investors remain concerned about possible new trade frictions between Washington and Beijing, particularly in the technology and semiconductor sectors.
Major Asian indexes: Nikkei and Kospi lead the declines
South Korea recorded the most volatile trading session of the day. After briefly surpassing the historic 8,000-point threshold during early trading, the Kospi sharply reversed course and closed at 7,727.34 points, down 3.2%. Profit-taking on technology stocks and concerns over a potential global slowdown heavily impacted AI and semiconductor shares.
In Japan, the Nikkei 225 ended the session at 61,880.04 points, down 1.2%. Tokyo markets were affected by new data showing Japanese wholesale inflation rising to 4.9% year-on-year, its highest level in three years. The figure strengthened expectations of further interest rate hikes by the Bank of Japan, weighing on Japanese equities.
Hong Kong also closed lower, with the Hang Seng Index ending at 26,145.66 points, down 0.9%, dragged lower mainly by technology and financial stocks. Mainland China performed differently: the Shanghai Composite managed to limit downside pressure and finished at 4,183.05 points, up slightly by 0.1%, supported by expectations of new stimulus measures from Beijing.
Inflation, oil and the Fed: the factors moving markets
Investors are now increasingly focused on the Federal Reserve’s upcoming decisions. According to international analysts, the combination of energy-driven inflation, resilient U.S. consumer spending and rising bond yields could push the U.S. central bank toward another interest rate hike before the end of the year.
At the same time, the stronger U.S. dollar and higher borrowing costs are reducing appetite for riskier assets, particularly across Asian emerging markets. Investors also remain cautious about the evolution of the global energy crisis and the possible economic consequences of prolonged tensions in the Persian Gulf.
Andrea Pelucchi