Bonds shaky, oil eases off highs amid trade, peace talks

Debt markets came under pressure on Thursday, according to Business Recorder, as Japanese government bonds moved lower in line with Treasuries after US markets fell sharply overnight. When Tokyo reopened after a three-day holiday, the Japanese 10-year yield rose by 8 basis points to 3.06%, its highest level since August 1996. The 30-year yield added 5.5 basis points to reach 4.12%.

Oil moved off its recent highs and the dollar held gains after Iran's leader vowed never to surrender, following a warning from Trump that he could annihilate Iran. Brent crude slipped 1% to $102.05 a barrel, while spot gold climbed 0.35% to $4,301.89 an ounce. Japan's Nikkei 225 rose 1.73% while the MSCI Asia ex-Japan index dropped 0.64%.

Attention also turned to a summit between Trump and Xi Jinping, where Treasury Secretary Scott Bessent said the two countries had agreed a deal to lengthen their 11-month trade truce. Traders were also watching Federal Reserve speeches and US jobless claims for signals on future rate increases. Australian shares fell to a more than three-month low, with the S&P/ASX 200 down 1.2%.