Asian stock markets traded mixed on Thursday, with Japan's Nikkei 225 rising 1.63% and South Korea's KOSPI gaining 0.90%. Australia's S&P/ASX 200 fell 1.27%, while the Shanghai Composite slipped 0.01%.
The moves came as investors assessed a sharp rise in US Treasury yields and its implications for interest rates. The 10-year US Treasury yield jumped 15 basis points to 5.11%, marking its biggest one-day increase since the market turmoil triggered by US President Donald Trump's April 2025 tariff announcement.
The move higher in yields followed stronger economic data and weak demand at a US government debt auction. Demand at a sale of five-year Treasury notes was also weak, pushing the yield above 5% for the first time since 2007.
Higher yields have strengthened expectations for further Federal Reserve interest-rate increases, adding to pressure on global bond markets. Government bonds in Japan, Australia and New Zealand also declined as the US Treasury selloff spread across markets.
Oil prices remained elevated but eased from Wednesday's sharp advance. Brent crude traded below $103 a barrel after rising almost 4% in the previous session, while West Texas Intermediate was near $92. Brent fell 0.8% to around $102.30 a barrel in early Asian trading.
The dollar held close to its strongest level since late July as investors assessed the shifting interest-rate outlook and continued to monitor developments in energy markets.
The combination of higher bond yields and elevated crude prices remains a key focus for investors as markets assess the implications for inflation and the path of US monetary policy.
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