Asia-Pacific stock markets delivered a mixed set of results on Friday, dragged lower in part by a retreat on Wall Street following a Treasury Department debt buyback initiative that left investors unconvinced. Stock index futures in the United States posted modest gains.
The Nikkei 225 index in Tokyo edged down 0.2 per cent, closing at 66,080.25. The Kospi index advanced 0.9 per cent, reaching 6,914.09. The Hang Seng index in Hong Kong climbed 0.7 per cent to close at 25,888.36, while Shanghai's Composite index held steady at 3,903.81. The S&P/ASX 200 index in Australia dipped 0.3 per cent to sit at 9,053.90. The Taiex in Taiwan advanced 0.4 per cent, whereas the Sensex in India edged down 0.1 per cent.
On Wednesday, the Treasury Department said it would more than double its intended acquisitions of long-dated government bonds, with Secretary Scott Bessent indicating the following day that the buyback effort may expand further. Bond yields, which had been trading at elevated levels amid investor concerns over persistent inflation linked to the conflict in Iran and growing federal debt, eased following the announcement.
When borrowing expenses rise across the financial system, broader economic activity tends to slow, and equity valuations can face downward pressure. Forecasters anticipated that any impact on bond yields would prove short-lived.
On Friday morning, the rate on the 10-year U.S. Treasury note stood at approximately 4.71 per cent, climbing from roughly 4.64 per cent the previous day and returning to the range seen prior to the Treasury Department's announcement. The 30-year Treasury yield climbed to approximately 5.26 per cent, compared with 5.18 per cent the previous day. Bond yields across Asian markets edged higher as well. The yield on Japan's 10-year government bonds climbed to 2.88 per cent on Thursday, up from approximately 2.83 per cent, with the securities having recently traded near their highest levels in three decades.
Rising bond yields have put downward pressure on equity prices. The S&P 500 index declined by 0.9 per cent on Thursday. The Dow Jones Industrial Average retreated 1.3 per cent, while the Nasdaq composite, which is weighted toward technology stocks, recorded a 1 per cent loss.
Oil prices dipped modestly during early Friday trading as the United States intensified its economic pressure on Iran, even as efforts to reduce tensions between the two nations have yielded little headway. The globally traded Brent crude benchmark dipped 0.2 per cent, settling at $93.64 per barrel. Prior to the conflict's outbreak, the price stood at around $72 a barrel. West Texas Intermediate crude oil traded at $86.59 per barrel, reflecting a 0.3 per cent decline.
The U.S. dollar edged down against the Japanese yen, trading at 159.01 compared with 159.05 yen previously. The euro changed hands at $1.1694, edging higher from a prior level of $1.1678.
