US Treasury yields surge, threatening AI-driven rally in Asian stocks

Data shows that in the past five years, when the US 10-year Treasury yield rose by 20 basis points or more in a single week, the MSCI Asia Pacific Index fell in 16 out of 19 weeks, with an average decline of 1.6%. Last week’s market performance continued this pattern. This trend reminds investors that Asia’s position in global equity portfolios remains vulnerable to the same pressures currently testing global stock markets. The surge in bond yields reflects market bets that war-driven oil price hikes will force central banks to raise interest rates, which could dampen economic growth.