Asian Stocks Weather Bond Storm as Oil Retreats Slightly

Asian stocks held their ground on Friday despite the US bond market sell-off pushing longer-dated yields to two-decade highs. The relentless selling of bonds has raised borrowing costs worldwide, threatening lofty equity valuations.

The Brent crude oil price eased 1.2% to $105.3 a barrel after Iranian President Masoud Pezeshkian said it was up to the US to choose when the war will end. Oil's return above $100 a barrel has fueled inflation fears, bolstering bets on multiple US Federal Reserve rate hikes.

The MSCI Asia-Pacific shares index outside Japan slipped 0.1%, with most markets closed for a holiday. However, Japan's Nikkei rose 1.3% and Australia's resources-heavy shares fell 0.4%. The Hang Seng index in Hong Kong skidded 1.4%.

Nasdaq futures rose 0.3% and S&P 500 futures inched up 0.1%, while the US dollar gained 1% this week to 101.22 against its major peers, about the highest since late July.