Asian markets set for subdued open amid rising global bond yields

Asian markets were expected to open quietly on Monday, Mettis Link News reported, as investors stayed wary of rising global bond yields. Middle East tensions and inflation worries also weighed on sentiment. Japan's Nikkei 225 futures pointed to a roughly flat start.

Hong Kong's Hang Seng Index futures traded at 25,895, below the previous close of 26,009.46. Asian shares had been hit hard the prior session, with South Korea's Kospi down 3.47 per cent. A weak Wall Street week, with higher Treasury yields pressuring valuations, added to the caution, as the Dow lost 0.8 per cent for a second weekly decline. The S&P 500 and Nasdaq fell 1.4 per cent and 2 per cent respectively.

Global bond yields have jumped, with the 30-year Treasury yield passing 5.3% last week, a level not seen in nearly two decades. Japan, France and Germany have also seen yields reach multiyear highs. Renewed Trump administration pressure on countries with business ties to Iran has kept geopolitical risks in focus, alongside oil and inflation concerns. Traders next look to the July personal consumption expenditures index, due Wednesday, ahead of Fed chair Kevin Warsh's Jackson Hole remarks. Nvidia reports on Wednesday and Marvell Technology on Thursday.