Asian Stocks Plunge Amid Wild Bond Fluctuations Ahead of US Jobs Report

Asian stock markets declined on Friday as investors struggled to cope with volatile fluctuations in bond and currency markets ahead of key US jobs data. The US nonfarm payrolls report is expected to show a gain of 90,000 jobs in September, while the unemployment rate is forecasted to remain steady at 4.1%.

The outcome will have significant implications for interest rates, with Federal Reserve policymakers divided on whether to raise rates further this month or wait until December. Currently, markets are pricing in a 25% chance of another rate hike this month.

A hot jobs print could revive bets on a second rate rise from the Fed and push Treasury yields higher again. The benchmark 10-year yield hit a 24-year high of 5.34% after its biggest quarterly rise in 32 years, but dipped overnight to ease some pressure.