Asian stock markets opened mixed on October 27, 2023, as investors weighed the impact of rising U.S. Treasury yields and the earnings reports of major tech companies. Japan's Nikkei 225 index fell 0.3% in early trading, while South Korea's Kospi index rose 0.2%. In Hong Kong, the Hang Seng index was down 0.1%, and China's Shanghai Composite index was flat. Australia's S&P/ASX 200 index was up 0.1%.
The mixed performance in Asia followed a decline on Wall Street, where the S&P 500 index fell 0.3% and the Nasdaq Composite index dropped 0.5%. The Dow Jones Industrial Average, however, managed to eke out a 0.1% gain. The yield on the 10-year U.S. Treasury note rose to 1.67%, its highest level in more than a month.
Investors are closely watching the earnings reports of major tech companies, including Microsoft, Alphabet, and Amazon. Microsoft reported better-than-expected earnings, but its stock fell in after-hours trading due to concerns about slowing growth in its cloud business. Alphabet, the parent company of Google, also beat earnings expectations, but its stock was down in after-hours trading due to concerns about rising costs. Amazon is set to report its earnings after the market close on October 27.
The U.S. dollar was steady against a basket of currencies, while the Japanese yen weakened. Oil prices were also steady, with Brent crude at $86 a barrel and U.S. West Texas Intermediate (WTI) crude at $83 a barrel. Gold prices were slightly lower.