Asia stocks slip as oil, bond yields weigh on markets

Asian equities declined on Tuesday after a steep jump in worldwide bond yields and costlier oil weighed on sentiment, while traders awaited a possible rate increase from Australia's central bank.

Reuters reported that the 10-year US Treasury yield topped 5.27 per cent overnight, its loftiest reading in 19 years, with the two-year yield nearing 5 per cent. Oil rose as Brent crude climbed to roughly $107.17 a barrel, a gain of 1.8 per cent, and US crude added 1.73 per cent to about $94.20.

Japan's Nikkei 225 lost 1.27 per cent to close at 65,038.74, while South Korea's KOSPI dropped 1 per cent to 6,820.53. Hong Kong's Hang Seng Index shed 0.63 per cent to 24,486.52 while the Shanghai Composite edged up 0.08 per cent. India's Nifty 50 fell 0.81 per cent, Malaysia's index lost 0.95 per cent and Singapore's Straits Times Index eased 0.43 per cent.