- Following losses on Wall Street, shares throughout Asia declined as a result of low oil prices and worries about China's financial stability. After a spike, Treasury bonds fell as Japanese debt was liquidated.
- Hong Kong, mainland China, and Australia had weaker equity values as the S&P 500 saw its third consecutive day of declines. US futures remained stable.
- After falling to 4.1% on Wednesday, the lowest level since August, 10-year Treasury rates increased. The seven-basis-point increase followed a selloff in Japanese sovereign debt and represents a wider shift in attitude observed in Australian bonds as well.
- Japan's 10-year yield ended a three-day fall on Thursday, rising as much as 10.5 basis points to 0.75%. Weak demand from a 30-year government paper auction added to the move's strength. The yen gained 0.5% versus the US dollar.
- The declines in energy producers following the oil price's lowest point since June due to oversupply worries and concerns about China's debt load following Moody's Investors Service's downgrade of several local companies and its earlier downgrade of the country's sovereign bond outlook were the main causes of the equity market's weakness.
- Hao Hong, chief economist at Grow Investment, said, "It is very surprising that Moody's has downgraded the outlook for a large number of Chinese companies." "After outlook downgrades, Moody's typically lowers the companies' rating within one to one and a half years, increasing their funding costs."
