Asian Equities Fall as US Treasury Yields Rise and Bitcoin Breaks $70,000
Asian equities retreated alongside Wall Street as rising US long-term bond yields and corporate earnings concerns offset relief from lower oil prices and a surge in Bitcoin.
Asian stocks opened lower, tracking a decline on Wall Street, as MSCI’s Asia Pacific equities gauge fell 0.2%. The downturn follows a 0.9% drop in the S&P 500, led by Walmart’s steepest decline since 2022 due to disappointing sales, and a fifth consecutive daily loss for the Nasdaq 100, which fell 0.7%.
Bond markets remain volatile as investors digest the implications of elevated government financing costs. The 30-year US Treasury yield climbed six basis points to close at 5.25%, erasing most of the recent drop triggered by the Treasury’s surprise move to increase long-dated bond buybacks. The 10-year yield also erased its losses to close at 4.70%.
Treasury Secretary Scott Bessent recently indicated room for larger debt buybacks and hinted at an upcoming fiscal plan. Despite this, lofty borrowing costs continue to feed through the broader economy, weighing on equity valuations after years of persistent inflation and heavy government spending.
Commodities offered slight relief to inflation-sensitive investors, with Brent crude slipping 0.7% to $93.10 a barrel. This pullback follows a five-day rally sparked by President Donald Trump’s threats of “economic warfare” against Iran after Tehran failed to accept a deal. Meanwhile, gold held steady near $4,530 an ounce.
Digital assets diverged from the broader risk-off sentiment. Bitcoin surpassed $70,000 for the first time in over two months, trading around $72,600 early Friday. The rally followed a high-stakes meeting between President Trump and prominent crypto industry leaders.
In foreign exchange markets, a broad gauge of the dollar’s strength edged lower. The yen stabilized around 158.90 per dollar after briefly breaching the 159 level in the prior session. Japan’s key price gauge accelerated for a second consecutive month, keeping the Bank of Japan on track for a potential interest rate hike as early as September.
In corporate news, early attention in Asia is focused on technology stocks. Samsung Electronics plans to announce a new shareholder return package valued at up to 110 trillion won, or $79 billion.
