MSCI’s Asia Pacific equities gauge dropped 0.2%. The Kospi bucked the trend, rising 0.87%, while Japan’s Nikkei 225 slipped 0.90% and the Topix eased 0.31%. Hang Seng futures were little changed.
The S&P 500 Index had fallen 0.9% overnight, dragged down by Walmart, which posted its steepest decline since 2022 after weak sales figures. The Nasdaq 100 lost 0.7%, marking its fifth straight day of losses.
Also Read: Dow Jones sells off 700 points as bond yields rebound; Walmart sinks on weak results
Asian bonds fell and the US dollar stayed weak after an earlier rally in the US Treasuries lost steam. Investors seemed to be questioning whether US buybacks of long-dated debt would bring only short-lived relief to borrowing costs.
Bonds in Australia and New Zealand opened lower after US 30-year yields rose on Thursday, even though US Treasury Secretary Scott Bessent hinted at bigger buybacks and a fresh fiscal plan ahead.
The 30-year yield climbed six basis points to 5.25%, wiping out most of the drop triggered by the Treasury’s surprise move to boost buybacks.
The Japanese yen held steady after the country’s key inflation gauge picked up for a second straight month, keeping the Bank of Japan on course for another rate hike soon, with markets now eyeing a possible move as early as September. The yen traded near 158.96 per dollar, having briefly crossed 159 in the previous session.
The offshore yuan was little changed at 6.7238 per dollar.
In technology stocks, attention turned to Samsung Electronics, which was expected to unveil a shareholder return package worth up to 110 trillion won ($79 billion) on Friday, according to a Bloomberg report.
Also Read: Japan’s core inflation accelerates in July, bolsters case for rate hike
Oil prices meanwhile eased after a five-day rally driven by US President Donald Trump’s threat of “economic warfare” against Iran, after he said Tehran had rejected a deal.
Brent crude slipped 0.7% to $93.10 a barrel, having come close to $94 a barrel during Thursday’s trading. West Texas Intermediate fell 0.7% to $86.19 a barrel.
