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World Markets Mixed Tuesday            10/03 04:52

   World shares were mixed Tuesday after Wall Street simmered under pressure 
from rising bond yields.

   BANGKOK (AP) -- World shares were mixed Tuesday after Wall Street simmered 
under pressure from rising bond yields.

   U.S. futures and oil prices edged higher.

   Germany's DAX fell 0.3% to 15,205.21 and the CAC 40 in Paris gave up 0.2% to 
7,055.01. Britain's FTSE 100 gained 0.4% to 7,536.42.

   Hong Kong's Hang Seng sank 2.7% to 17,331.22 as investors unloaded property 
shares. However, China Evergrande jumped 28% after resuming trading Tuesday. 
Its shares were suspended last week as the troubled real estate developer 
announced that its chairman was under investigation. Earlier in the session its 
shares soared more than 60%.

   Markets in mainland China and South Korea remained closed for holidays.

   Tokyo's Nikkei 225 index fell 1.6% to 31,237.94, while Australia's S&P/ASX 
200 skidded 1.3% to 6,943.40. India's Sensex declined 0.4% to 65,545.88.

   Bangkok's SET was down 1.4% and Taiwan's Taiex fell 0.6%.

   On Monday, the S&P 500 ended little changed and the Dow Jones Industrial 
Average slipped 0.2%. The Nasdaq composite rose 0.7% to 13,307.77.

   Oil-and-gas stocks sank as crude prices gave back some of the sharp gains 
made since the summer.

   Early Tuesday, U.S. benchmark crude oil was up 11 cents at $88.93 per barrel 
in electronic trading on the New York Mercantile Exchange.

   Prices have pulled back after charging higher from $70 in the summer. A 
barrel of U.S. crude fell $1.97 on Monday to settle at $88.82.

   Brent crude, the international standard, added 4 cents to $90.75 per barrel. 
On Monday, Brent lost $1.49 to settle at $90.71 a barrel.

   Stocks have given back 40% of their strong gains for the year since the end 
of July. The main reason is a growing recognition that high interest rates will 
persist for a while as the Federal Reserve tries to knock high inflation lower.

   That in turn has pushed Treasury yields to their highest levels in more than 
a decade.

   The yield on the 10-year Treasury rose Monday to 4.67% from 4.58% late 
Friday. It's near its highest level since 2007. High yields send investors 
toward bonds that are paying much more than in the past, which pulls dollars 
away from stocks and undercuts their prices.

   Any relief rally from a compromise spending bill approved by Congress over 
the weekend, which has staved off a U.S. government shutdown for another few 
weeks, appeared muted under pressure from heavy selling of bonds, which pushed 
yields higher.

   "So, investors were on the fence, carefully considering the relationship 
between economic growth and interest rates and what actions the Federal Reserve 
might take in response to these factors," Stephen Innes of SPI Asset Management 
said in a commentary.

   Stocks that pay high dividends with relatively steady businesses are 
squeezed because investors are more likely to switch between stocks and bonds. 
That puts a harsh spotlight on utility companies. PG&E dropped 5.6%, and 
Dominion Energy sank 5.3% for some of the sharpest losses in the S&P 500.

   High interest rates also make borrowing more expensive for all kinds of 
companies, which can pressure their profits. High interest rates are designed 
to slow the overall economy and can cause disruptions in far-flung, unexpected 
corners of the economy.

   The overall U.S. economy has so far been holding up, defying predictions 
that it would have fallen into a recession by now.

   In currency dealings Tuesday, the dollar fell to 149.85 Japanese yen from 
149.86 yen. The euro rose to $1.0490 from $1.0480.

   The dollar has gained in value against many other currencies as U.S. 
interest rates have risen faster than those in many other countries. Higher 
interest rates can mean higher yields for investments.

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