{ "id": 9683729, "title": "Asian stocks weather bond storm, oil retreats slightly", "url": "https://urgent.news/2026/09/25/asian-stocks-weather-bond-storm-oil-retreats-slightly", "topic": "finance", "section": "Finance & Markets", "published": "2026-09-25T03:05:29.000Z", "source": { "name": "Business Recorder", "slug": "business-recorder", "url": "https://www.brecorder.com/news/40441181/asian-stocks-weather-bond-storm-oil-retreats-slightly" }, "original_language": "en", "account": "Asian shares endured a rocky Friday as a wave of bond selling sent US yields to multi-decade peaks, intensifying global borrowing costs and fueling concerns over escalating equity valuations. The resurgence of oil prices above $100 per barrel, with Brent crude touching $105, heightened inflation worries and propelled the dollar towards a 1% weekly surge.\n\nChinese President Xi Jinping was in Washington for discussions with President Donald Trump, yet despite the high-profile meeting, little progress was made on contentious subjects such as artificial intelligence, trade, Taiwan, and the ongoing conflict with Iran. MSCI's Asia-Pacific index, excluding Japan, remained stagnant, with most markets, including mainland China, Taiwan, and South Korea, observing a holiday.\n\nThe Nikkei in Japan climbed 1%, whereas Australia's resources-rich shares slipped 0.6%. The Hang Seng index in Hong Kong declined 1%. Risk assets are under pressure from a sharp drop in global bonds, as inflation concerns and fiscal stresses compel investors to seek higher returns, especially on longer-term debt. Nigel Green, CEO of deVere Group, a financial advisory firm, warned, \"The world's bond markets are in turmoil, and disregarding this could prove to be highly costly. Once risk-free rates exceed 5% in the world's biggest economy, all assets globally must prove their worth against that benchmark. Equities, property, private credit, emerging market debt - none are exempt.\"\n\nThe 10-year Treasury yield surged 1 basis point to 5.1915%, after a 20 basis point increase over two days, marking the highest level since 2014. Thirty-year US bond yields climbed 2 basis points to 5.4805%, having risen 16 basis points over the past two days to hit 5.5016%, the highest since 2004. This surge propelled US mortgage rates to 7%, placing strain on the housing market. Asian bonds continued the global sell-off, with Japan's 10-year government bond yields up 4 basis points to 3.115%, the highest since 1996. Australia's 10-year government bond yields also increased 4 basis points to 5.408%.\n\nThe short end of the Treasury curve experienced no respite. Fed funds futures now suggest a 71% probability of another rate hike next month, up from around 53% earlier in the week, and indicate more than 90 basis points of tightening still to come this cycle, equivalent to nearly four quarter-point hikes. The 2-year yields remained stable at 4.9035%, after a 16 basis point increase this week, nearing a two-year high.\n\nThe Federal Reserve's decision to resume rate hikes last week is reverberating through global markets. As inflation pressures mount, smaller central banks are adopting a more aggressive stance, with Norway's Norges Bank raising rates on Thursday and Sweden's Riksbank indicating a possible hike by the end of the year. Mexico's Banxico held rates steady but signaled a potential end to its prolonged pause. This maintains the US dollar strong, surging 1% this week to 101.25 against its major counterparts, close to the highest level since late July.\n\nIn the commodities market, Brent crude oil retreated 0.8% to $105.75 per barrel, after a 3% increase overnight due to a Houthi missile strike on Saudi Arabia, reigniting fears of supply disruptions. Meanwhile, participants in the market remain hopeful for a potential truce between the US and Iran, as the two nations reportedly entertain a phased approach to reopen the Strait of Hormuz.", "summary": "SYDNEY: Asian shares held their nerve on Friday as a relentless bond selloff pushed longer dated US yields to two-decade highs, raising borrowing costs worldwide and threatening lofty equity valuations. The return of oil above $100 a barrel , with Brent crude near $105, has revived inflation fears, bolstering bets on multiple Federal Reserve rate hikes after its first move in more than three…", "key_points": [ "Asian stocks weather bond market turbulence with yields hitting multi-decade peaks", "Oil prices retreat slightly below $105 per barrel, easing inflation concerns", "US dollar strengthens 1% weekly, nearing highest level since late July" ], "editors_take": "The surge in global bond yields, driven by inflation concerns and fiscal stresses, is pressuring risk assets, including equities, and is likely to compel investors to reassess their worth.", "illustration": null, "coverage": { "outlets": 5, "also_reported_by": [ { "outlet": "Investing.com", "title": "Asian stocks weather bond storm, oil retreats slightly", "url": "https://urgent.news/2026/09/25/asian-stocks-weather-bond-storm-oil-retreats-slightly-9684580", "published": "2026-09-25T02:24:27.000Z" }, { "outlet": "Free Malaysia Today", "title": "Asian stocks weather bond storm", "url": "https://urgent.news/2026/09/25/asian-stocks-weather-bond-storm", "published": "2026-09-25T02:41:19.000Z" }, { "outlet": "New Straits Times", "title": "Asian stocks weather bond storm, oil retreats slightly", "url": "https://urgent.news/2026/09/25/asian-stocks-weather-bond-storm-oil-retreats-slightly-9688094", "published": "2026-09-25T03:02:45.000Z" }, { "outlet": "The Business Times - Companies & Markets", "title": "Asian stocks weather bond storm, oil retreats slightly", "url": "https://urgent.news/2026/09/25/asian-stocks-weather-bond-storm-oil-retreats-slightly-9685168", "published": "2026-09-25T03:07:23.000Z" } ] }, "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." }