Asian shares decline under pressure from rising bond yields and surging oil prices – Yahoo Finance

Hong Kong (AP) — Asian equities tumbled while oil prices surged on Thursday, following a retreat in U.S. stock markets after hitting recent peaks.

U.S. equity futures showed mixed sentiment as investors evaluated divergent performances across regions.

Equity markets pulled back under mounting pressure from climbing bond yields. The 10‑year U.S. Treasury yields remained near a decade‑high after a Federal Reserve meeting indicated that most officials anticipate additional rate hikes later this year.

Key regional indexes posted declines: Japan’s Nikkei 225 slipped 0.9% to close at 69,438.77, South Korea’s Kospi fell 0.8% to 6,750.25, Hong Kong’s Hang Seng dropped 0.2% to 24,072.98, and the Shanghai Composite edged down 0.1% to 3,840.03. Australian investors saw the S&P/ASX 200 fall 0.6% to 8,677.20, while Taiwan’s Taipei Composite narrowed 0.7%.

On Wednesday, the benchmark U.S. indices turned modestly lower. The S&P 500 slipped 0.2% despite earlier reaching an all‑time high, the Dow Jones Industrial Average edged down 0.7% and the Nasdaq composite fell 0.2% from its prior record.

U.S. inflation remains above the Federal Reserve’s 2 % target. In September the central bank raised rates for the first time in three years by 25 basis points to a range of 3.75 %–4.00 %.

Higher bond yields weigh heavily on equities, as soaring financing costs increase borrowing expenses for firms and households. Treasury yields climbed sharply, peaking at roughly 5.31 % after reaching 5.36 % on Wednesday—the highest level since 2002.

Oil prices rebounded amid uncertainty over global crude supplies. Tensions persist between the United States and Iran, and neither side has reached a settlement. An analysis cited by The Atlantic warned that the White House considered ordering the Pentagon to assess strike options against Iran ahead of the November midterm elections.

Thursday saw Brent crude climb 2.2% to $102.43 per barrel, and the benchmark U.S. crude rose 1.9% to $89.96 a barrel.

The International Energy Agency called for accelerated releases from strategic oil inventories.

Currency markets adjusted to the shift; the U.S. dollar strengthened to 158.20 Japanese yen (up from 158.08) while the euro quoted at $1.1198, reflecting heightened bond yields elsewhere and fiscal concerns that pressured the greenback.

Contributing reporter: AP Business Writer Stan Choe.

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