Asia report: Markets mixed as bond sell-off, oil keep investors cautious

(Sharecast News) - Asian markets were mixed on Friday as investors assessed another sharp sell-off in global bond markets against a modest pullback in oil prices.

The Nikkei 225 rose 1.3%, while the Hang Seng fell 1.6%. India's Sensex was up 0.2% and Singapore's Straits Times Index edged higher. Meanwhile, markets in mainland China and South Korea were closed for holidays.

Bond yields remained firmly in focus after another sell-off in US Treasuries overnight. The benchmark 10-year US yield briefly moved above 5.2%, its highest level since 2007, while the 30-year yield climbed to levels not seen since 2004.

Japanese government bonds also weakened, with the country's 10-year yield rising to around 3.1%, adding to concerns over higher global borrowing costs.

Oil prices eased slightly after strong gains in the previous session, but remained elevated. Brent crude futures were down 1.9% at $104.64 a barrel, with markets still sensitive to developments in the Middle East and potential disruption to supplies through the Strait of Hormuz.

In Tokyo, semiconductor and financial stocks were among the strongest performers. Tokyo Electron, Advantest and Ibiden gained, along with banking peers Mitsubishi UFJ Financial Group and Sumitomo Mitsui Financial Group.

However, tech investor SoftBank Group fell amid scrutiny of its growing debt burden, while reports of delays at an Oracle-backed US data-centre project added to concerns over the financing and execution of large-scale AI infrastructure.