Asian Markets Decline Amid Volatile Bond and Currency Markets

Asian markets experienced a decline on Friday as investors grappled with volatile bond and currency markets ahead of key US jobs data. The benchmark 10-year US Treasury yields reached their highest since 2002 at 5.34% but later retreated to steady at 5.2512%. France's fiscal worries pushed the spread between French and German sovereign bond yields above 140 basis points, affecting European stocks and the euro.

The single currency slid as far as $1.1215, its lowest since May 2025, and sank against the yen and Swiss franc. MSCI's Asia-Pacific shares outside Japan fell 0.5% and were on track for a weekly decline of 1.7%. Nasdaq futures rose 0.3% after the pullback in Treasury yields helped Wall Street stage a late rebound.

US nonfarm payrolls are due later in the day, with forecasts centered on a rise of 90,000 jobs in September and an employment rate steady at 4.1%. Hourly earnings will be closely watched after the ISM survey showed a huge jump in prices paid, pointing to more cost pressures.