Asian Shares Fall, Treasury Yields Hit 2002 High

Asian equities weakened as investors weighed volatile bond and currency markets ahead of U.S. jobs data, while rising oil prices tied to the prospect of renewed U.S.-Iran hostilities revived inflation concerns. Treasury yields had surged to their highest level since 2002 before retreating, and investors were watching wage growth for clues about the Federal Reserve’s next moves. Fiscal concerns in France pushed the gap between French and German bond yields to its widest since 2012, adding pressure on European markets and the euro. The regional picture was mixed: Asian shares outside Japan fell, while Japan’s Nikkei was still on track for a weekly gain; some U.S. stock futures edged higher after Wall Street’s late rebound. Investors remain focused on whether higher energy costs and persistent price pressures could prolong interest-rate tightening, or whether the Treasury rebound can hold.