Asian Stocks Weather Bond Storm Amid Inflation Fears
Asian stocks held their ground on Friday despite a relentless bond selloff that pushed US yields to two-decade highs, raising borrowing costs worldwide and threatening lofty equity valuations. Oil prices retreated slightly after climbing 3% overnight as Iranian President said it was up to the US to choose when the war will end.
The return of oil above $100 a barrel has fueled inflation fears, bolstering bets on multiple Federal Reserve rate hikes. The dollar is on track for a 1% weekly gain.
Nikkei rose 1.3%, while Australia's resources-heavy shares fell 0.4%. Hong Kong's Hang Seng index skidded 1.4%. Nasdaq futures rose 0.3% and S&P 500 futures inched up 0.1%.
Nigel Green, CEO of deVere Group, said 'The world's bond markets are screaming, and ignoring it could prove very expensive.'