Global Shares Mixed On Easing Treasury Yields

Hong Kong: Asian stocks rose early Friday as US Treasury yields eased after a rocky week due to worries in the bond market over mounting US government debt. The yield of the 10-year Treasury shed 0.6 per cent to 4.52 per cent while the two-year yield, which more closely tracks expectations for action by the Federal Reserve, slipped 0.4 per cent to 3.98 per cent.

Oil prices dropped on expectations that the OPEC+ group of oil exporters may decide on another increase in output at their next meeting. US benchmark crude oil dropped 51 cents to $60.69 per barrel while Brent crude, the international standard, gave up 51 cents to $63.93 per barrel.

In share trading, Tokyo's Nikkei 225 gained 0.8 per cent to 37,289.60 after the government reported a core inflation rate of 3.5 per cent in April, the highest since early 2023. The surge in prices has increased the likelihood that the Bank of Japan might raise its benchmark interest rate at its next policy meeting, analysts said.

But pressures and uncertainty from US President Donald Trump's tariff hikes will limit what the BOJ can do, given recent signs of weakness in the economy, Min Joo Kang of ING Economics said in a report. He added that “with US tariffs likely to impact manufacturing and exports negatively throughout this year, the BOJ's policy changes are likely to be gradual.”

Hong Kong's Hang Seng picked up 0.4 per cent to 23,627.99 while the Shanghai Composite Index added 1 per cent to 3,382.12. Seoul's Kospi climbed 0.2 per cent to 2,597.49 and the S&P/ASX 200 in Australia gained 0.4 per cent to 8,379.10.

On Thursday, stocks drifted to a mixed close on Wall Street. The S&P 500 slipped less than 0.1 per cent, to close at 5,842.01. The Dow Jones Industrial Average fell 1.35 points to 41,859.09. The Nasdaq composite rose 0.3 per cent to 18,925.73. Technology stocks did most of the heavy lifting for the broader market.