Asian shares wobble as tech rout boosts bonds, dents rate hike bets

Asian equities retreated on Friday as concerns about the scale of AI investment weighed on technology shares, while investors shifted into government bonds and currencies seen as safe havens. Business Recorder reported that MSCI’s Asia-Pacific index excluding Japan fell 0.3%, leaving it down 2.7% for the week and marking a fourth weekly decline.

The market moves also reduced expectations for further Federal Reserve tightening: a December rate increase was no longer fully priced, with its implied probability at 85%. Meanwhile, Brent crude reached $114 a barrel amid concern that Houthi attacks in Saudi Arabia could disrupt energy supplies further. The 10-year US Treasury yield dropped more than 19 basis points overnight before stabilising at 4.9591%, while gold was flat at $4,021.99 an ounce after falling nearly 3% overnight.