Asian shares fall after wild bond, FX swings ahead of US jobs data

Asian shares experienced a decline of 0.5% on Friday, with a projected weekly drop of 1.7%, according to MSCI. The volatility in bond and currency markets, coupled with the buildup of military forces in the Gulf, contributed to the downward trend. In the US, bond markets saw significant activity, with the 10-year US Treasury yield peaking at 5.34%, its highest level since 2002.

Later, the yield eased to 5.2512% in Asia. The widening spread between French and German sovereign bond yields, exceeding 140 basis points, added to the European market's turmoil. The euro dropped to its lowest level since May 2025, falling to US$1.1215. Meanwhile, Japan's Nikkei index slipped 0.7% but was poised for a 3.1% weekly increase.

Chinese markets, including mainland China, were closed for a public holiday. Nasdaq futures saw a 0.3% increase, while S&P 500 futures rose by 0.1%. Investors are eagerly awaiting the release of the US nonfarm payrolls data later in the day, with expectations of a rise in September jobs by 90,000 and a stable employment rate of 4.1%.