Asian Stocks Hold Steady Amid Bond Selloff and Inflation Fears

Asian stock markets held steady on Friday despite rising borrowing costs worldwide and inflation fears. The benchmark 10-year Treasury yield rose to 5.1915 per cent, a new 19-year peak, with 30-year US bond yields climbing to 5.4805 per cent, the highest since 2004.

The global selloff in bonds pushed investors to demand higher returns on long-dated debt, squeezing risk assets and threatening lofty equity valuations. 'The world's bond markets are screaming, and ignoring it could prove very expensive,' said Nigel Green, CEO of deVere Group.

Asian shares outside Japan were flat, with most markets closed for a holiday, but Japan's Nikkei rose one per cent. The US dollar gained one per cent this week to 101.25 against its major peers.

In the commodities market, Brent crude eased 0.8 per cent to US$105.75 a barrel after climbing three per cent overnight due to supply disruptions in Saudi Arabia.