Asian markets set for muted open amid bond sell-off

Asian bourses were poised for a quiet start on Thursday, according to Mettis Global, as a worldwide bond sell-off and renewed U.S.-Iran hostilities kept investors cautious. Japan's Nikkei 225 was tipped to open higher, with Osaka futures at 64,480 against a prior close of 64,325.64. Hang Seng Index futures traded just above their last close, while Australia's ASX 200 futures stayed near Wednesday's level.

Regional equities mostly closed higher in the previous session, with South Korea's Kospi up 1.32 per cent while the Kosdaq slipped 0.5 per cent. Global bond markets stayed under pressure, and the U.S. two-year Treasury yield reached 4.41 per cent, its highest since January 2025. The 10-year yield briefly touched 4.818 per cent, a level last seen in November 2023, before easing from those peaks. New York Fed President John Williams credited the rise in yields mainly to strong U.S. economic prospects rather than a weakening in financial conditions.

Oil also advanced, with West Texas Intermediate futures climbing 0.9 per cent and ending just over $91 a barrel as the U.S.-Iran conflict kept investors watching. Attention now shifts to the weekly U.S. jobless figures due Thursday and the August jobs report on Friday.