Asia shares downbeat on the week as bond yields, oil stay high

Business Recorder reported that most regional equity benchmarks in Asia were set for weekly losses on Friday, as strain in global bond markets showed no sign of easing. The Nikkei slipped 0.8% and was down 4.4% for the week so far, while South Korea and Taiwan edged higher but also trailed for the week.

Treasury yields kept rising after a surprise intervention by the Treasury on Wednesday offered only a day of relief. Treasury Secretary Scott Bessent said repurchases could grow and floated fiscal consolidation, yet analysts doubted spending cuts could be deep enough to tackle a deficit above 6% of GDP, with interest payments alone reaching $1.2 trillion this year. The 30-year yield climbed back to 5.25% and the 10-year reached 4.71%.

Oil rose after Bessent elaborated on the economic campaign against Iran that Trump has threatened, promising the toughest sanctions in history and denting hopes for a deal to fully reopen the Strait of Hormuz. Brent peaked at $94.71, a one-month high, before profit-taking pulled it back to $93.12 a barrel. Gold held at $4,513 an ounce, up 3.1% for the week, while the dollar index slipped almost 0.9% for the week to 98.802 amid worries about US debt.