Asian Shares Plummet as Bond Market Volatility Hits New Heights

Asian shares fell on Friday as investors grappled with wild swings in bond and currency markets ahead of key US jobs data. The benchmark 10-year US Treasury yields hit a 20-year high at 5.34% after capping the biggest quarterly rise in 32 years, but later retreated to steady at 5.2512%. This volatility rattled European stocks and sent the euro sliding as far as $1.1215, the lowest since May 2025.

The spread between French and German sovereign bond yields widened to its highest level since 2012, pushing up fiscal worries in France. Mainland Chinese markets are closed for a public holiday through Wednesday of next week. MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.5% and was on track for a weekly decline of 1.7%.

Nasdaq futures rose 0.3% and S&P 500 futures inched up 0.1% after the pullback in Treasury yields helped Wall Street stage a late rebound. All eyes are on the US nonfarm payrolls due later in the day, with forecasts centered on a rise of 90,000 jobs in September.