Global Stocks Climb as Oil and Yields Ease, While Tokyo Sits Out the Rally

Global equities are extending gains as two major headwinds for risk assets – surging oil prices and rising U.S. bond yields – show signs of easing. On Monday, September 21, U.S. stocks rallied broadly, with the S&P 500 closing within roughly 0.4% of its all‑time high. The pullback in crude oil futures and a retreat in the 10‑year Treasury yield from above 5% to the high‑4% range helped restore risk appetite. The 10‑year yield is a key benchmark for mortgage rates and corporate borrowing costs, so any move lower tends to be welcomed by equity investors.

Asia picked up the baton on Tuesday, September 22, with most regional benchmarks trading higher in response to Wall Street’s strong session. Tokyo, however, remains closed for an extended holiday, meaning Japanese equities will not fully price in the global rebound until trading resumes later in the week. While concerns about Middle East tensions and a prolonged era of “higher for longer” interest rates have not disappeared, the near‑term picture for global stocks has brightened as oil and yields step back from recent peaks. At the same time, energy names are seeing bouts of profit‑taking as investors reassess the outlook for crude after its rapid rise.