Asia report: Shares mixed with Japan bonds, geopolitics in focus

(Sharecast News) - Asian markets finished mixed on Tuesday as investors weighed rising global bond yields, geopolitical tensions and uneven economic signals from China and South Korea.

Across the region, traders remained focused on the global bond selloff, which has pushed yields in major economies to fresh highs. The move has revived concerns that central banks may need to keep policy tighter for longer, particularly with oil prices climbing again amid geopolitical risks.

Geopolitics continued to cast a shadow over markets, with investors monitoring developments in the Middle East after renewed US-Iran clashes. Any further escalation threatens to keep energy prices elevated, complicating inflation dynamics for Asian importers and adding another layer of uncertainty.

China's economic backdrop also remained in focus. While recent data showed slight improvement in manufacturing activity, the sector remains below the key 50point threshold, underscoring the fragility of the recovery. Propertyrelated concerns persisted, weighing on Hong Konglisted developers and mainland financials.

In Tokyo, the Nikkei 225 slipped for a second session, ending down 0.15% at 66,215.34 as domestic yields continued to climb. The 10year JGB touched levels last seen in the mid1990s, keeping pressure on ratesensitive sectors and prompting renewed speculation over the Bank of Japan's next policy move.

Hong Kong's Hang Seng extended recent losses, closing 0.93% lower at 25,329.73. Property and consumer stocks led the decline as rising oil prices and fresh Middle East tensions added to inflation worries. Weakness in several largecap tech names also weighed on sentiment.

On the mainland, the Shanghai Composite eased 0.16% to 3,979.89, with traders reluctant to take on risk ahead of further economic data releases. Gains in retail and healthcare shares were offset by softness in industrials and financials, while PMI readings continued to highlight patchy momentum in the manufacturing sector.

Seoul bucked the broader trend, with the Kospi rising 0.23% to 6,835.80. Chipmakers led the advance after strong export figures showed semiconductor shipments surging, reinforcing expectations of robust earnings for Korea's major tech names. Foreign investors returned to the market after several sessions of outflows.

Australia's S&P/ASX 200 edged lower, slipping 0.10% to 9,066.70 as higher bond yields and ratehike expectations weighed on financials and consumer stocks. Energy stocks outperformed thanks to firmer crude prices, but the broader index struggled to gain traction after touching a twoweek low earlier in the session.

Reporting by Frank Prenesti for Sharecast.com