Asian stocks plunge as US Treasury yields rise and oil prices retreat
Asian equity indices fell sharply on Friday, mirroring Wall Street losses driven by higher US 10-year yields and easing oil prices.
Friday’s trading saw Asian markets tumble, with the GIFT Nifty futures down 137 points, indicating a bleak opening for the Nifty50 benchmark. Japan's one outlet 225 and South Korea's Kospi fell 3% and 2.6% respectively, echoing Wall Street’s dip of roughly 0.6% in the Dow, S&P 500, and Nasdaq. The benchmark US 10-year Treasury yield stayed close to the 5% threshold, reinforcing concerns over higher financing costs.
Crude oil prices retreated from a near-$110 per barrel peak after West Asian tensions eased, and Saudi Arabia reported its output had fallen to the lowest level since 1990, prompting OPEC discussions. Gold and silver futures also slipped as investors priced in a possible Federal Reserve rate hike following a rise in the Producer Price Index.
Why it matters
The slide in Asian equities reflects global risk aversion triggered by rising US yields and volatile oil markets.
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