Asia shares downbeat on the week as bond yields, oil stay high
SYDNEY: Most Asian share indices were heading for weekly falls on Friday as stress in global bond markets showed little sign of abating, while a diplomatic deadlock in the Gulf lifted oil prices to one-month highs and kept inflation risks to the fore. Yields on US Treasuries had resumed their climb after Wednesday’s surprise intervention by Treasury brought barely a day of relief from selling.…
Asian share indices were heading for weekly declines on Friday due to mounting concerns in global bond markets and a diplomatic standoff in the Gulf, which drove oil prices to one-month highs. US Treasury yields resumed their upward trend after a surprise intervention by Treasury, despite assurances from Treasury Secretary Scott Bessent that further purchases and fiscal consolidation were possible.
Analysts remain skeptical of these measures, citing record debt levels and large deficits as fundamental concerns. Treasury yields climbed to 5.25% for 30-year bonds and 4.71% for 10-year bonds, signaling potential global debt costs. This market jitters led to a 4.4% decline for the Tokyo Nikkei, with South Korea and Taiwan also slipping, though MSCI's Asia-Pacific index excluding Japan gained 0.5%.
In Europe, EUROSTOXX 50 and DAX futures saw slight declines, while FTSE futures dropped 0.1%. On Wall Street, S&P 500 and Nasdaq futures were up slightly, but not enough to offset the week's losses. Bessent further amplified tensions by expanding on Trump's economic sanctions against Iran, which could hinder the Strait of Hormuz and push Brent oil to $94.71 per barrel, a one-month high.
The dollar continued its decline, pressured by mounting US debt and policy uncertainties, while gold held steady at $4,513 an ounce.
Written by urgent.news from Business Recorder's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
