Asian Markets Mixed Amid Bond Yield Concerns
Asian markets were mixed on Friday as investors continued to grapple with concerns over global bond yields and oil prices. The US Treasury yield reached its highest level since 2007, sparking a sell-off in the bond market.
The Nikkei 225 in Japan gained 1.2% to 66,318.14, while Hong Kong's Hang Seng slipped 1.7% to 24,333.20. Australia's S&P/ASX 200 fell 0.5% to 8,660.30.
India's Sensex was up 0.2%, but markets in mainland China, Taiwan, and South Korea were closed due to a holiday.
The sell-off in the bond market has added pressure to the stock market, with the yield on the US 10-year Treasury reaching its highest level since 2007 at around 5.19%. The US 10-year Treasury had risen above 5.20% on Thursday from around 5.11% on Wednesday.
Government bond yields have been elevated as investors demand higher compensation due to increasing risks and uncertainties, including growing inflationary pressure from the Iran war-driven energy shock and rising US government debt.