Asian Stocks Slide as US Inflation Data Dampens Rate Hike Bets

Asian stocks were subdued on October 1 as investors weighed in on a slower-than-expected rise in US inflation in August, which reduces the likelihood of a rate hike later this month.

The MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.2%, with South Korea's KOSPI easing 0.14%. However, Japan's Nikkei was up over 1% due to gains in chip-related shares.

Despite blockbuster earnings from AI chipmaker Micron failing to lift the mood, investors remained cautious as they considered the impact of the US-Iran peace talks on oil prices.

The yield on benchmark US 10-year Treasury notes hit 5.306%, its highest level since mid-June 2007, while the 30-year Treasury yield reached 5.634% after hitting 5.6517% in the previous session.