Asian Currencies Mixed as Dollar Holds Near Two-Month High 
South Korea, US Discuss Warship Building Cooperation 
US 10-Year Treasury Yield at 6% Emerges as New Market Risk Threshold 
Wall Street Ends Flat as Oil, Treasury Yields and Fed Jitters Rattle Markets 
U.S. Dollar Hits Two-Month High as Oil, Treasury Yields Surge 
Mexico-US Trade Talks Delayed to October as Tariff Negotiations Continue 
US, China Extend Trade Truce to Jan. 10 Ahead of Trump-Xi Summit 
US Stock Futures Fall as Treasury Yields Surge Ahead of Trump-Xi Summit 
Oil Prices Jump 3% as Houthi Attack Revives Supply Fears 
Australia Unemployment Hits Five-Year High Despite Strong Jobs Growth 
Dollar Holds Near Two-Month High as Yen Approaches 160 
Russian Envoy Dmitriev Heads to US for Ukraine Talks 
European Stocks Fall as Bond Yields and Geopolitical Risks Weigh 
Japanese Bank Stocks Surge as Bond Yields Fuel Rate Hike Bets 
Oil Prices Ease as Iran Tensions Clash With Diplomacy Hopes 
Gold Holds Near $4,275 as Rising Treasury Yields Fuel Fed Rate Hike Bets 
U.S. 10-Year Treasury Yield Hits 2007 High as Fed Rate Hike Bets Rise 
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Asian stocks mostly declined on Friday as a global bond market selloff drove long-term U.S. Treasury yields to multi-year highs, pressuring risk appetite across regional markets. Investors were also assessing the outcome of talks between U.S. President Donald Trump and Chinese President Xi Jinping.
Japan bucked the broader weakness, with the Nikkei 225 climbing about 1.3% and the TOPIX gaining roughly 1.2%. Japanese technology stocks extended their recovery following a three-day holiday break, while a weaker yen provided additional support to exporters.
Hong Kong shares moved sharply lower, with the Hang Seng falling nearly 2% and technology stocks leading the decline. Australia’s S&P/ASX 200 dropped around 0.5%. Markets in mainland China, South Korea and Taiwan were closed for holidays, resulting in thinner regional trading volumes.
The biggest pressure came from surging government bond yields. The benchmark U.S. 10-year Treasury yield traded around 5.19% after reaching 5.2251%, its highest level in 19 years. The 30-year yield recently touched 5.5016%, its highest since 2004. Japan’s 10-year government bond yield climbed to 3.115%, the highest since 1996, while Australia’s 10-year yield rose to about 5.408%.
Persistent inflation concerns, fueled partly by elevated energy prices, have increased expectations for additional monetary tightening. Fed funds futures indicated roughly a 70% probability of another Federal Reserve rate hike in October, compared with about 53% earlier in the week.
Oil prices eased Friday after Brent crude surged more than 3% in the previous session following a Houthi missile attack on Saudi Arabia. Reports that the United States and Iran were exploring a phased approach to reopening the Strait of Hormuz offered some relief to energy markets.
Meanwhile, investors continued digesting the Trump-Xi summit in Washington. The discussions covered major strategic issues including trade, technology and Taiwan, while markets remained focused on whether ongoing negotiations could produce more durable economic agreements.
Elsewhere, Singapore shares were little changed, while Indian equity futures pointed to a relatively muted start.
