Regional equities advance despite weekly losses, while US bond yields rebound and geopolitical risks lift crude prices.
Asian stock markets edged higher Friday, supported by a pullback in global bond yields, though indices remained set for weekly declines. The Nikkei 225 and Hang Seng posted modest gains as US Treasury yields, which had dipped midweek, resumed their upward trend after a brief intervention by the US Treasury failed to ease long-term concerns over fiscal sustainability.
Earlier, US Treasury Secretary Scott Bessent signaled potential fiscal consolidation and increased repurchases of government debt, but analysts warned such measures would lack lasting impact without a credible plan to reduce national debt. Commerzbank’s Christoph Rieger noted that markets remain focused on the broader trajectory of US public finances rather than short-term balance-sheet operations.
Meanwhile, oil prices climbed as diplomatic tensions in the Gulf escalated. Washington is preparing new economic sanctions targeting Iran’s banking, shipping, and smuggling networks, set to be announced Monday, heightening supply disruption fears.