After a prior selloff, global stocks and bonds have temporarily stabilized, with market attention focused on the upcoming US PCE inflation data.

On Wednesday, the MSCI Asia-Pacific index rose 0.9%, on track for its largest single-day gain in three weeks. US stock futures climbed, with Dow futures up 0.5%, while European stocks opened higher. The 10-year US Treasury yield moved lower, Brent crude dropped 1%, and spot gold rose 0.44% intraday, surpassing $4,200.

Oil prices and the US-Iran situation remain the main sources of market uncertainty. Rising energy costs could push inflation higher and reinforce expectations for further Fed rate hikes, driving global bond yields to multi-year highs. Meanwhile, next month's corporate earnings will be a key test of whether high US equity valuations can be justified by profits.

Arjun Vij, a fund manager at JPMorgan Asset Management, said: "The bond selloff could stop for one of the following reasons: a rapid resolution of the Middle East conflict, a sharp decline in US stocks driven by slowing hard economic data, or falling earnings and slowing guidance."

Key market moves are as follows:

S&P 500 index futures rose 0.3%, and Nasdaq 100 index futures gained 0.2%.

The Euro Stoxx 50 opened up 0.23%, Germany's DAX rose 0.43%, the UK's FTSE 100 gained 0.39%, and France's CAC 40 added 0.04%.

Japan's Nikkei 225 closed up 1.9% at 66,753.72. The TOPIX closed up 1.7% at 4,108.65. South Korea's KOSPI closed down 0.48% at 6,838.04.

The 10-year US Treasury yield edged lower to 5.21%.

Brent crude fell 1.0% intraday to $95.18 per barrel.

Spot gold rose above $4,200 per ounce, up 0.44% intraday.

Markets await PCE inflation data as US stock futures rise

US stock futures rose, with Dow futures up 0.5%, S&P 500 futures up 0.3%, and Nasdaq 100 futures up 0.2%.

Market focus shifted to US August personal consumption expenditures (PCE) data due on Wednesday. As the Fed's preferred inflation gauge, both headline and core PCE are expected to accelerate on a month-over-month basis in August.

Tim Waterer, chief market analyst at KCM Trade, said that if the data comes in above expectations, it could reinforce the Fed's hawkish stance and provide justification for further tightening; if the data is weaker, it could prompt markets to reassess the need for an October rate hike and dampen the recent upward momentum in US Treasury yields.

The dollar index stabilized and is on track for its best monthly performance since June. As the Fed refocuses on curbing inflation, market rate expectations have continued to rise. US Treasury yields across maturities have temporarily steadied, with the 10-year yield at 5.21%.

Oil prices retreat, gold tops $4,200

Brent crude fell 1.0% intraday to $95.18 per barrel.

According to JPMorgan's latest research report released on September 29, the 10-day average of total Middle East oil exports has rebounded to 20.5 million barrels per day, equivalent to 89% of pre-war levels in 2025, just 11% below pre-war levels. JPMorgan's commodities research team concluded that the crude oil market has basically normalized. This means that despite ongoing regional conflicts, a substantial recovery on the supply side has been confirmed at the data level.

Spot gold rose above $4,200 per ounce, up 0.44% intraday.