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Asia report: Shares fall on bond sell-off, oil price surge

Fri 11 September 2026 09:12 | A A A

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(Sharecast News) - Asian markets fell sharply on Friday as investors reacted to Wall Street's latest decline, surging oil prices and rising global bond yields.

Japan's Nikkei 225 dropped 1.9% to 64,011.34, pressured by weakness in heavyweight tech names including SoftBank. Hong Kong's Hang Seng slipped 0.7% to 24,789.07, while China's Shanghai Composite lost 1.2% to 3,888.11 amid cautious sentiment despite a strong debut for AI chipmaker Enflame.

South Korea's Kospi fell 1.8% to 6,909.91, with Samsung Electronics and SK Hynix leading declines as higher US Treasury yields weighed on regional tech stocks.

Australia's S&P/ASX 200 ended 0.9% lower at 8,741.20, dragged by energy and financial names as traders assessed the inflationary impact of elevated crude prices.

Oil remained a central driver of market nerves, with Brent crude easing to $105.14 after briefly rising above $108 earlier in the session, while US crude fell to $100.46. Investors continued to monitor tensions around the Strait of Hormuz, where oil flows remain significantly below prewar levels, adding to inflation uncertainty and keeping global yields elevated.

Global borrowing costs hit multidecade highs, with investors increasingly pricing in further tightening from major central banks.

US Treasury yields approached the key 5% threshold, reflecting expectations of a nearterm Federal Reserve rate hike after stronger producerprice data and heightened concerns over the inflationary impact of prolonged Middle East supply disruptions.

European bond markets also weakened, with German bund and French OAT futures slipping to longterm lows as traders demanded greater compensation for holding sovereign debt amid rising deficits and elevated energydriven price pressures.

Asian government bonds mirrored the global selloff, with Australia's threeyear yield hitting a 15year high and Japan's 10year nearing 3% as markets braced for further policy tightening from regional central banks.

Analysts warned that a sustained break above 5% on US 10year Treasuries could draw capital out of equities, raising mortgage and corporate borrowing costs and intensifying fiscal pressures across developed economies.

Reporting by Frank Prenesti for Sharecast.com

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