{
  "id": 2289202,
  "title": "Asian markets extend rally as traders assess US Treasuries pledge",
  "url": "https://urgent.news/2026/08/21/asian-markets-extend-rally-as-traders-assess-us-treasuries-pledge-2289202",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-08-21T03:22:00.000Z",
  "source": {
    "name": "CNA - Business",
    "slug": "cna-business",
    "url": "https://www.channelnewsasia.com/business/asian-markets-extend-rally-traders-assess-us-treasuries-pledge-6332391"
  },
  "original_language": "en",
  "account": "Asian markets continued their upward trend on Friday (Aug 21) as traders evaluated the US Treasury's initiative to lower long-term bond yields, although analysts cautioned that this action alone may not suffice to prevent borrowing costs from rising. Treasury Secretary Scott Bessent's assurance that he had additional tools for support offered little comfort to skeptical Wall Street investors, who resumed selling due to worries over high inflation and government borrowing, among other factors. The ongoing deadlock in the Strait of Hormuz added to the market's uncertainty, with oil prices gradually increasing over the last two weeks as the United States and Iran remain at an impasse. On Wednesday, the US Treasury announced plans to double its sovereign bond buybacks, following a surge in the 30-year yield to levels not seen since 2007, just before the global financial crisis. This move provided a much-needed boost to markets, but it rebounded on Thursday, with Mark Malek of Muriel Siebert & Co describing it as a short-term \"housekeeping move.\" Bessent stated that his department had a \"big toolkit\" to address yields that the Treasury views as unmoored from financial conditions, which could include more bond purchases beyond the scale announced on Wednesday. He believes the yields do not reflect underlying fundamentals and anticipates inflation to ease once the United States \"gets on the other side\" of the Iran war and oil prices retreat. The increase in yields adversely affected Wall Street, where all three major indexes fell as tech firms, which rely on debt for their large investments, declined. However, Asian markets performed better, with Seoul driven by a rally in chipmakers Samsung and SK hynix. SK hynix increased by more than 12% on Thursday after announcing a $29 billion share buyback. Hong Kong, Singapore, Wellington, and Taipei also rose, while Tokyo, Sydney, and Shanghai declined. Currency markets saw the yen strengthening against the dollar as Japanese inflation rose last month due to higher oil prices caused by the Middle East crisis, providing the Bank of Japan with room to raise interest rates next month. Analysts attribute the spike in yields to various factors, including increased government spending commitments, the boom in AI infrastructure spending, and corporate bond issuances by tech giants like Amazon, Alphabet, and Meta. Some investors prefer investing in Big Tech over indebted sovereigns, contributing to the excess supply in global sovereign debt markets. Fed Chair Kevin Warsh's refusal to provide market guidance on the Fed's plans has also fueled uncertainty on trading floors. Traders will closely monitor Warsh's speech at the upcoming annual meeting of central bankers in Jackson Hole, hoping for clarification on monetary policy.",
  "summary": null,
  "key_points": [
    "Asian markets extended rally on Aug 21, traders assess US Treasury's plan to lower bond yields",
    "Treasury Secretary Scott Bessent assured additional support tools, but investors skeptical",
    "US Treasury doubled sovereign bond buybacks, yields rose to 2007 levels before rebound"
  ],
  "editors_take": "The US Treasury's initiative to lower long-term bond yields has provided a temporary boost to Asian markets, but analysts believe it may not be enough to prevent borrowing costs from rising.",
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "Channel News Asia",
        "title": "Asian markets extend rally as traders assess US Treasuries pledge",
        "url": "https://urgent.news/2026/08/21/asian-markets-extend-rally-as-traders-assess-us-treasuries-pledge-2292591",
        "published": "2026-08-21T03:22:00.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}