Japan's Nikkei climbed higher, with the Tokyo Stock Exchange reporting a gain that outpaced the broader Asian market, while Topix also rose, lifting overall regional indices by 0.2%. According to the Nikkei, the Nikkei index closed above 33,000 points, and Topix finished above 1,200 points, mirroring the modest uptick across the region.
US Treasury 10‑year yields surged to 5.13%, the highest level since July 2007, stoking expectations of a third Fed rate hike this year. Bloomberg noted the yield jump as a reaction to the latest inflation data and the Fed’s hawkish stance.
Oil prices added another layer of volatility: Brent crude settled at $106.60 a barrel, its fifth straight session above $106, while West Texas Intermediate fell to $93.87 after talks about a phased reopening of the Strait of Hormuz. The Indian rupee weakened against the dollar, and the yen held steady at 158.78 per dollar.
Investors are now focusing on the interplay between oil, bond yields, and Fed policy. The market expects the next U.S. CPI release to anchor expectations, while analysts predict that the exchange will continue to price in three additional quarter‑point Fed hikes over the next 12 months. Traders will keep a close eye on the upcoming Asian earnings season, hoping for a breakout that could offset the current yield‑driven pressure.