Bonds set for bruising September; stocks fare better

According to Business Recorder, global government bonds slipped on Wednesday and were heading for their weakest month in years. The sell-off was blamed on weaker public finances, a heavy wave of new debt sales and firmer inflation, while energy costs stayed high because of the US-Israeli conflict with Iran, now in its seventh month.

Stocks told a different story, with Asian equities holding up better. MSCI's Asia-Pacific index excluding Japan rose 0.2% in early trading and was on course for a monthly fall of just over 1%. Much of the resilience was put down to upbeat corporate earnings, global economic strength and enthusiasm for artificial intelligence. Citi's Mohammed Apabhai, head of Asia-Pacific trading strategy, called the calm equity reaction surprising, noting that US shares were responding to higher yields only outside technology.

The greenback was heading for a 2% gain over the month, helped by higher US yields, while the euro hovered close to its 16-month low, at $1.1336. Brent crude climbed 0.56% to $103.16 a barrel and was set for a monthly gain, while spot gold slipped 0.2% to $4,171.93 an ounce.