Global Market Today: Asian stocks follow Wall Street lower, dollar slips

Asian bonds declined and the dollar remained under pressure after a rally in Treasuries faded, with investors betting that US efforts to contain borrowing costs through buybacks may offer only a temporary reprieve.

Bonds in Australia and New Zealand opened lower after 30-year US bond yields rose Thursday even as Treasury Secretary Scott Bessent flagged scope for larger debt buybacks and an upcoming fiscal plan. The yield climbed six basis points to close the session at 5.25%, recouping most of the decline sparked by the Treasury’s surprise decision to increase buybacks of long-dated bonds. The 10-year yield erased its losses to close at 4.70%.

Elsewhere, Asian stocks followed Wall Street lower with MSCI’s Asia Pacific equities gauge falling 0.2%. Earlier, the S&P 500 Index dropped 0.9%, with Walmart Inc. sinking the most since 2022 after disappointing sales. The Nasdaq 100 fell 0.7% for a fifth straight loss.


Read more: Indian equity markets rally nearly 1% as dollar retreats and US bond yields cool

Some relief for markets came early Friday with Brent slipping 0.7% to $93.10 a barrel. The commodity had rallied for five days as President Donald Trump threatened Iran with “economic warfare” and said Tehran had failed to accept a deal.

The moves in bonds extended a volatile stretch on Wall Street as a series of Treasury decisions underscored growing concern over elevated long-term yields. Lofty government financing costs are feeding through to the broader economy and weighing on equities, after years of elevated inflation and government spending.

While traders initially cheered Wednesday’s move, the enthusiasm didn’t last long because it doesn’t address the overarching reasons for the rise in yields, said Mark Malek, chief investment officer of Muriel Siebert & Co.

“It was just a housekeeping move destined to be short-term, at best,” he said.

In other corners of the market, the yen stayed steady after Japan’s key price gauge accelerated for a second month, keeping the Bank of Japan on track for another near-term interest rate hike as market speculation builds over a move as soon as September.

The yen traded around 158.90 per dollar after sliding past the 159 level in the prior session.

A Bloomberg gauge of the dollar’s strength edged lower early Friday, while gold steadied around $4,530 an ounce.

Bitcoin surpassed $70,000 for the first time in over two months after a high-stakes meeting Trump held with crypto industry leaders. The original crypto currency traded at about $72,600 early Friday.

Early attention in Asia is also on technology stocks. Samsung Electronics Co. plans to announce Friday a new shareholder return package that could be worth as much as 110 trillion won ($79 billion), according to a person familiar with the matter.