US Jobs Data Looms as Asian Stocks Tumble Amid Treasury Yield Surge

Asian stock markets declined on Friday as investors grappled with volatility in bond and currency markets ahead of key US jobs data. The benchmark 10-year US Treasury yield hit a 24-year high at 5.34% after capping the biggest quarterly rise in 32 years, before retreating to 5.2512%. This rise in yields was accompanied by a strengthening US dollar, which has now gained for three straight weeks.

The euro suffered significant losses, sliding as far as $1.1215 and falling against the yen and Swiss franc. French bond yields rose to 14-year highs, pushing the spread between French and German sovereign bond yields above 140 basis points, a level not seen since 2012.

Mainland Chinese markets are closed for a public holiday through Wednesday of next week, but Nasdaq futures rose 0.3% and S&P 500 futures inched up 0.1%. The employment rate is expected to remain steady at 4.1%, while hourly earnings will be closely watched after the ISM survey showed a huge jump in prices paid.

Chris Weston, head of research at Pepperstone, noted that 'a hot wages print could prove particularly influential for US rates, Treasuries and the USD'.