Asia stocks slump as bond selloff spooks markets

Asian stocks dropped to their lowest point in 11 months as global bond markets continue to experience turmoil. The surge in US Treasury yields caused the dollar to reach new highs, with only the yen putting up a fight amid speculation of Japanese authorities intervening. The yen briefly surpassed the 150 per dollar mark before rebounding to 149.181. The spike in yields was prompted by stronger-than-expected US job openings data. The 10-year yield rose to 4.838%, the highest in 16 years. As a result, MSCI’s index of Asia-Pacific shares fell by more than 1% for the second consecutive day, with Japan’s Nikkei and South Korea’s Kospi taking hits of over 2%. S&P 500 futures also fell by 0.3%. Bonds in Asia’s emerging markets also felt the pressure, with several currencies reaching milestone lows. The dollar’s relentless surging pushed the euro to its weakest point in 10 months and sterling to its lowest in seven months. The Australian and New Zealand dollars were also near 11-month lows.