Global market wrap: Asian stocks witness selloff amid rate hike fears; Softbank surges 7%

We are back with quick updates on global developments around stock markets, commodities and companies that are creating buzz today.

Asian stocks were mostly trading lower on Thursday as markets expected the US Federal Reserve to hike rates even further in October on surging Treasury yields.

Japan’s Nikkei index was the only outlier, adding 1.2% on Thursday in a catch-up rally as the markets opened after three consecutive days of holiday. South Korea’s Kospi index was closed for trading today.

Besides that, China’s Shanghai Composite index declined 0.9% to 3,900, while Hong Kong’s Hang Seng Index lost 0.5% to 24,712. Singapore’s Straits Times inched down 0.1% to 5,702, while Australia’s S&P/ASX 200 also 0.8% to 8,696.

US stock futures were trading with a negative bias on Thursday ahead of the release of the weekly jobless claims. S&P 500 futures and Nasdaq 100 futures were down 0.3% each, while futures tied to the Dow slipped 0.2%.

In the regular trading session on Wednesday, the S&P 500 dropped 0.75%, the Dow Jones Industrial Average 0.68%, while the Nasdaq Composite lost 1.1%.

Oil prices eased on Thursday after witnessing a sharp rebound in the previous session. The US crude oil futures for November delivery were down 0.7% to $91.47 per barrel at 0036 EDT, while Brent futures for November delivery 0.8% to $102.31 per barrel.

Gold prices were steady on Thursday after Wednesday’s selloff triggered by rate hike fears. US gold futures for ​December delivery were nearly unchanged at $4,321 per ounce, while spot gold was also trading flat at $4,286 per ounce by 0446 GMT.

Here’s a look at the other key developments of the day:

Meta launches handheld gadget Charm to use its ‘Muse’ AI assistant

Meta CEO Mark Zuckerberg on Wednesday unveiled a small handheld gadget called Meta Charm for using its new Muse AI assistant.

The AI device is about the size of an Apple AirPods case. It features a roughly 2-inch touchscreen and a built-in 5G connection. Meta said Charm would be ready to ship for the holidays in December, but stopped short of disclosing its price.

“We pack the whole Muse experience, including the whole real-time voice and avatar stack, into something that fits on a keychain and is always available to talk to,” Zuckerberg said at Meta's annual device event, Meta Connect, in Menlo Park, California.

Zuckerberg also unveiled a host of other new products, including a pair of camera-less smart glasses and virtual reality glasses.

SoftBank surges 7% on $11.1-billion bond issuance

Shares of SoftBank Group surged over 7% on Thursday on the Tokyo Stock Exchange soon after the Japanese markets opened for the first time week, but later erased all their gains as the trading session progressed. The technology investor on Thursday announced an $11.1 billion bond issuance to help fund its investments in OpenAI.

SoftBank formally announced on Thursday that it issued $10 billion in dollar-denominated senior notes and 1 billion euros ($1.14 billion) in euro-denominated notes. The company said proceeds will be used to fund a $10 billion payment for the third and final tranche of its $30 billion follow-on investment in OpenAI, which is expected to close on 1 October, as well as for general corporate purposes.

McDonald’s shares down 5% as company expects growth challenges

McDonald’s shares lost nearly 5% on Wednesday after the fast-food chain warned that industry-wide customer traffic in key markets would likely remain flat as long as inflation stays elevated.

The company also unveiled an $8.5 billion franchisee support plan and a slate of long-term growth initiatives under its “NEXT” strategy to reignite growth after several quarters of slowing sales and intensifying competition from value-focused rivals.

Microsoft plans to invest over $10 billion in Gulf countries by 2030

US tech giant Microsoft is planning to invest more than $10 billion across the United Arab Emirates, Saudi Arabia, Qatar and Kuwait between now and 2030, including in ​cloud and AI infrastructure.

A senior company executive said on Wednesday that Microsoft is making digital resilience a key part of its strategy for the region as the Iran war rumbles on.

Microsoft also plans ​to invest more than $400 million in subsea and terrestrial connectivity across ​the Middle ⁠East by 2030.

Australia’s unemployment rate hits 5-year high in August

Data revealed that Australia’s unemployment rate rose to a five-year high in August as more people entered the labour force. Though, employment growth exceeded expectations during the month.

The Australian Bureau of Statistics said on Thursday that employment rose by 39,500 in August against the broader expectation of an increase of 21,500 and a decline of 15,900 in July.

The unemployment rate, however, rose to 4.6% from 4.5% the previous month. The reading was the highest since November 2021.