Asia markets slide as US yields hit highest since February

investingLive Asia-Pacific market news: Asia stocks slip

• The 10-year US Treasury yield ended Monday around 5.24%, marking its strongest closing level since the US attack on Iran on February 28. Overall US interest rates finished at their most elevated point since that event.
• Most Asia-Pacific equities declined following a sluggish session on Wall Street. Japan's Nikkei 225 lost 1.2%, driven by declines in refiner and power-related shares, while the KOSPI shed 0.6% as technology heavyweights pulled it lower.
• Crude oil advanced. Speculation that Iran had shown flexibility on nuclear matters and that the US might provide sanctions relief and unfreeze assets in exchange was rejected by an Iranian official and by President Trump.
• Gold edged up just 0.5% after sliding Monday alongside rising yields.
• The yen and other key currencies saw minimal change. Finance Minister Katayama said Tokyo and US Treasury Secretary Bessent had agreed to enhance cooperation, and she described an undervalued yen as problematic.
• Australian household expenditure was unchanged in August, with the Reserve Bank's decision expected today (0430 GMT/ 0030 US Eastern time). A rate hike to 4.60% is broadly anticipated.
• Anthropic's IPO filing indicates a net loss of roughly $42 billion for 2025, revenue of close to $4.6 billion and planned compute commitments worth about $518 billion, according to Reuters.

Asian-Pacific equities were mainly in the red on Tuesday after a lackluster handover from US markets, where stocks faced pressure from rising oil prices and bond yields.

The US 10-year Treasury yield closed near 5.24% on Monday, its highest close since the February 28 US attack on Iran. US interest rates overall ended the session at their most elevated levels since that date, a development that weighed on Asian bourses.

Japan's Nikkei 225 slipped 1.2%, with weakness in refiner and power-related stocks leading the decline. South Korea's KOSPI fell 0.6%, experiencing volatile trade as technology heavyweights dragged the index lower amid rising yields.

Oil prices moved higher after a choppy but ultimately positive Monday session, fueled by conflicting geopolitical headlines. Reports indicated Iran had shown flexibility on nuclear issues and that President Donald Trump was prepared to offer sanctions relief and release frozen Iranian funds in exchange for concrete steps on the nuclear program. Both were later denied. An Iranian official said the reports of flexibility were false, while Trump posted that the story was untrue and that he had offered Iran nothing.

Gold gained 0.5% as prices tried to recover some of Monday's losses, when the metal dropped in the higher yield environment.

In currency markets, the yen and other major currencies showed little movement. Japanese Finance Minister Satsuki Katayama said Tokyo had agreed with US Treasury Secretary Scott Bessent to increase cooperation. She said an undervalued yen is generally problematic, that Prime Minister Sanae Takaichi's administration is not reflationary, and that interest rates are determined by markets.

Closer to home, Australian household spending was flat in August against a forecast rise of 0.4%, with annual growth easing to 6.8% from 7.0%. The data arrived ahead of the Reserve Bank of Australia's decision later today, where a rate hike to 4.60% is widely expected.

Separately, Singapore said it will allocate S$1.45 billion (about US$1.1 billion) to five asset managers to support its equities market.

In technology, Anthropic's IPO prospectus shows a net loss of around $42 billion for 2025, with revenue up twelve-fold to nearly $4.6 billion and planned compute commitments of about $518 billion, Reuters reported. The company could be valued at more than $2 trillion, with a debut likely after the US midterm elections.