Asian stock markets opened broadly lower on Friday, following a sharp selloff on Wall Street as longer-dated US Treasury yields moved higher. South Korea's Kospi fell 1.04%, Japan's Nikkei 225 declined 0.96% and Australia's ASX 200 slipped 0.19%.
The weaker regional start followed a difficult session in the US, where the Dow Jones Industrial Average dropped about 700 points, marking its steepest single-day decline since July 29. The S&P 500 fell 0.9%, while the Nasdaq Composite lost 1%.
US equity futures were largely steady after the overnight losses. Dow futures rose 24 points, while S&P 500 and Nasdaq-100 futures were around the flatline.
Bond markets remained another source of pressure. Asian bonds opened weaker after the recent rally in US Treasuries lost momentum, with investors questioning whether measures aimed at containing borrowing costs will provide lasting relief.
The US 30-year Treasury yield climbed six basis points to 5.25% on Thursday, recovering most of its previous decline. The 10-year yield also erased its earlier fall to finish at 4.70%. Treasury Secretary Scott Bessent has indicated that the government could expand its buyback programme as part of efforts to manage pressure in the bond market.
Oil remained elevated and was headed for a strong weekly advance as US efforts to isolate Iran raised concerns about further disruption to energy markets. Brent crude traded above $93 a barrel and was on track for a weekly gain of more than 5%. West Texas Intermediate slipped towards $86 after rising for five consecutive sessions.
The combination of weaker equities, higher bond yields and elevated crude prices is keeping investors cautious as markets assess the impact of US policy, energy costs and ongoing geopolitical tensions.
(With inputs from Bloomberg.)
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