[MARKET ANALYSIS] Asia-Pac stocks mostly declined following the recent global bond turmoil, although Nikkei 225 bucks the trend as it plays catch-up to recent AI momentum on return from the silver week holiday

APAC Stocks: Mostly lower Asia-Pac stocks are mostly pressured following on from the declines in global peers alongside the recent global bond turmoil and jump in yields, owing to several factors including strong data, hawkish Fed rhetoric and mixed reports of a US diesel export ban. ASX 200: -0.7% Retreated with the declines led by weakness in miners, real estate and materials, while sentiment is not helped by mixed jobs data including an unexpected rise in the Unemployment Rate to a five-year high. Nikkei 225: +1.4% Outperforms on return from the long weekend with tech names playing catch-up to the recent AI momentum. Hang Seng & Shanghai Comp: Hang Seng -0.5% / Shanghai Comp -0.9% Chinese markets retreated despite early optimism from President Xi's state visit to the US, while the announcement of a two-month extension to the US-China trade truce until January 10th also failed to spur risk appetite. US Equity Futures: Mildly lower Remained subdued after retreating alongside the global bond rout. European Equity Futures -0.4% Indicate a lower cash market open, with Euro Stoxx 50 futures down 0.4% after the cash market closed with losses of 0.4% on Wednesday.