Stories
Asian Shares Slide as Rising Bond Yields and Surging Oil Prices Weigh on Markets
- •Asian stock markets declined and oil prices surged following a retreat on Wall Street driven by rising bond yields.
- •The yield on the 10-Year US Treasury remained near multi-decade highs, reflecting expectations of another interest rate hike by the Federal Reserve.
- •Major indices across the region dropped, including Japan's Nikkei 225 down 0.9 per cent and South Korea's Kospi losing 0.8 per cent.
- •Oil prices climbed amid global supply uncertainties and ongoing tensions involving the US and Iran.
- •Brent crude rose 2.2 per cent to USD 102.43 per barrel while US benchmark crude increased 1.9 per cent to USD 89.96 a barrel.
Key Questions Answered
Asian shares fell and Wall Street retreated under pressure from surging bond yields and escalating oil prices. Most Federal Reserve officials indicated expectations for another interest rate hike this year as inflation remains above the Fed's 2 per cent target.
The yield on the US 10-Year Treasury hovered around 5.31 per cent after peaking as high as 5.36 per cent, marking its highest level since 2002. This surge in Treasury yields was driven by a global energy shock and growing national debt.
Oil prices surged due to persistent uncertainties surrounding global crude supplies as the US and Iran have yet to reach a deal to end their war. Brent crude rose 2.2 per cent to USD 102.43 per barrel, while benchmark US crude increased 1.9 per cent to USD 89.96 a barrel.
