Asian Shares Slide as Markets Grapple with Volatility Ahead of US Jobs Data

Asian shares declined on Friday as investors grappled with significant volatility in bond and currency markets ahead of crucial US jobs data. The MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.5% and was poised for a weekly decline of 1.7%. Japanese stocks dropped 0.7%, but were set to end the week up 3.1%.

The benchmark 10-year US Treasury yields reached their highest since 2002 at 5.34% after experiencing the biggest quarterly rise in 32 years, before retreating and stabilizing at 5.2512% in Asia. The spread between French and German sovereign bond yields widened to over 140 basis points, its widest since 2012, affecting European stocks and the euro.

The US nonfarm payrolls data due later in the day will be closely watched, with forecasts suggesting a rise of 90,000 jobs in September. Hourly earnings will also be under scrutiny after a recent survey showed a significant jump in prices paid, indicating more cost pressures.