Asian equity markets posted mixed results on Friday, reflecting the impact of a deepening global bond sell‑off and heightened geopolitical tension in the Middle East. The Nikkei 225 in Japan fell 0.9% to 68,326.72, while South Korea’s Kospi edged up 0.2% to 6,984.96. Hong Kong’s Hang Seng slipped 2.7% to 23,956.32, its lowest level since July. Australia’s S&P/ASX 200 rose 0.4% to 8,651.30, and Taiwan’s Taiex gained 0.2%.
Bond market pressure and Treasury yields
US Treasury yields eased slightly after peaking at 5.34% on Thursday, the highest level since 2002. The 10‑year yield settled around 5.25% on Friday, a modest retreat that still keeps the benchmark above the psychologically important 5% threshold. Portfolio manager David Clewell of T. Rowe Price noted that the 5% level has become a key marker for investors, and he suggested that, given the resilience of the US economy, the 10‑year yield could climb toward 5.5%‑6% in the near term.
Higher yields have been weighing on equity markets worldwide, as rising borrowing costs can erode corporate profit expectations. European markets also experienced sharp declines on Thursday after bond yields surged.
US market outlook and upcoming jobs data
US equity futures edged higher on Friday, with the S&P 500 up 0.2%, the Dow Jones Industrial Average up less than 0.1%, and the Nasdaq Composite gaining less than 0.1%. Traders are closely watching the US monthly jobs report for September, scheduled for release later today. The data will provide further clues about the Federal Reserve’s next move, as the central bank raised rates in September for the first time in three years and may consider another hike in October.
Middle‑East tension and President Trump’s warning
In a separate development, the United States announced the deployment of additional troops and a third aircraft carrier to the Middle East. President Donald Trump, speaking to reporters on Wednesday, warned that the United States could take “more decisive action” against Iran if the situation escalated. He also suggested the possibility of “blowing up” Iranian assets, underscoring a firm stance on protecting American interests.
Oil prices responded modestly, with Brent crude slipping 0.2% to $102.13 a barrel after an earlier advance. The price remains well above the roughly $72 per barrel level seen before the conflict began in February.
Currency movements
The US dollar weakened slightly against the Japanese yen, falling to 157.91 yen from 158.09 yen. The euro held steady at $1.1250, up marginally from $1.1244.
Markets in mainland China were closed for a holiday, limiting regional trading activity.
Overall, investors remain cautious as they balance the impact of higher US Treasury yields, the upcoming US jobs report, and the potential for further escalation in the Middle East. The Trump administration’s firm posture toward Iran aims to deter aggression while supporting a stable environment for global trade and investment.
Original reporting: Alexandria, VA News – WTOP News — read the source article.
