Asian Markets Suffer as Global Bond Stress Intensifies

Most Asian share indices were headed for weekly declines due to ongoing stress in global bond markets, coupled with a deadlock in the Gulf pushing up oil prices. U.S. Treasury interventions had limited impact, and investors remain wary of high yields affecting debt costs and stock valuations.

Asian markets witnessed a downtrend heading into the weekend, driven by escalating stress in global bond markets. The diplomatic stalemate in the Gulf caused oil prices to spike, intensifying inflation concerns.

Despite efforts by U.S. Treasury Secretary Scott Bessent to stabilize the market via increased Treasury repurchases and contemplating fiscal consolidation, skepticism persists. Analysts doubt substantial spending cuts to tackle the budget deficit, with some fearing interventions could damage Treasury's credibility.

Bond yields continue to rise, adversely affecting global debt costs as well as stock valuations. Markets keenly await Nvidia's report, expected to significantly impact AI-related trades. Meanwhile, the dollar faced pressure as concerns about U.S. debt grew, pushing investors toward gold.