Asian shares held their nerve on Friday (Sep 25), as a relentless bond sell-off pushed longer dated US yields to two-decade highs, raising borrowing costs worldwide and threatening lofty equity valuations.

Brent crude eased 1.2 per cent to US$105.3 a barrel, after climbing 3 per cent overnight, as Iranian President Masoud Pezeshkian said it was up to the US to choose when the war will end.

MSCI’s broadest index of Asia-Pacific shares outside Japan slipped 0.1 per cent, with most markets including Chinese mainland, Taiwan and South Korea closed for a holiday.


Japan’s Nikkei rose 1.3 per cent, while Australia’s resources-heavy shares fell 0.4 per cent. Hong Kong’s Hang Seng index skidded 1.4 per cent.


Risk assets are under threat from a dramatic sell-off in global bonds, as inflation worries and fiscal strains push investors to demand ever-higher returns particularly on long-dated debt.