Asian investors faced a turbulent start to the trading day on Friday as a renewed sell‑off in global bond markets lifted U.S. Treasury yields to levels not seen since 2007. The higher yields added pressure to equity markets across the region.
Key market moves
Japan’s Nikkei 225 posted a solid gain of 1.2%, closing at 66,318.14, while Hong Kong’s Hang Seng index fell 1.7% to 24,333.20. Australia’s S&P/ASX 200 slipped 0.5% to 8,660.30, and India’s Sensex edged up 0.2%.
Markets in mainland China, Taiwan and South Korea were closed for a holiday, limiting the breadth of the regional data.
Bond market pressure
The bond market’s latest sell‑off pushed the yield on the U.S. 10‑year Treasury to around 5.19% early Friday, after briefly topping 5.20% on Thursday. That figure marks the highest yield since 2007 and reflects investors demanding higher compensation amid rising inflationary pressures and concerns over expanding U.S. government debt.
Higher yields typically make bonds more attractive relative to stocks, prompting a shift in capital that weighed on equity valuations.
Oil prices ease
Brent crude fell 1.4% to $98.84 per barrel, staying below the psychologically important $100 level. Traders cited hopes for a reopening of the Strait of Hormuz, a critical chokepoint for global oil shipments, as a factor in the price decline. Despite the dip, oil remains well above the roughly $72 per barrel level seen in late February before the conflict in the Middle East escalated.
U.S.‑China diplomatic talks
While markets reacted to financial data, analysts noted that limited concrete progress emerged from the Washington meeting between President Donald Trump and Chinese President Xi Jinping. The two leaders discussed a range of topics, including trade, artificial intelligence and Middle‑East stability, but no major agreements were announced.
Currency movements
The U.S. dollar weakened slightly against the Japanese yen, moving to 158.34 yen from 158.86 yen. The euro traded at $1.1370, down from $1.1380.
U.S. market snapshot
On Wall Street, the S&P 500 was essentially flat, edging down less than 0.1% on Thursday. The Dow Jones Industrial Average slipped 0.3%, while the technology‑heavy Nasdaq composite rose less than 0.1%.
Analysts caution that the combination of elevated Treasury yields, volatile oil prices and ongoing geopolitical tensions could keep Asian markets in a state of flux in the coming weeks.
Original reporting: KTBS 3 (Shreveport) — read the source article.
