Asian Stocks Slide as Bond Stress Persists, BTC and Gold Rally as Safe Havens

Asian stock markets are suffering due to bond market stress, leading to a weekly decline in most indices. Despite this, Bitcoin (BTC) and gold have rallied as investors turn to safe havens. The move is driven by a broader flight from risk.

Rising Treasury yields have hit stocks in Asia and the US this week, causing traders to seek out assets seen as stores of value. Japan's Nikkei dropped 0.8% to open trading on Friday, extending its weekly loss to 4.4%. South Korea and Taiwan edged higher, but still finished the week lower.

The sell-off in Asian markets can be traced back to US Treasury yields, which resumed climbing this week after a brief pause. The 30-year yield rose to 5.25%, while the 10-year hit 4.71%. Secretary Scott Bessent suggested that the government could expand bond repurchases and float fiscal consolidation, but analysts doubt Washington can find enough spending cuts to narrow the deficit.

Deutsche Bank strategist Steven Zeng noted that historically, markets have pushed back when they believe fundamentals are on their side, making further interventions costly. Brent crude added pressure with a one-month high of $94.71 a barrel, before easing to $93.12 after toughened US sanctions threats against Iran.