Asian shares perform turbulently on pressing bond rout

Asian share markets had recorded a subdued performance, hitting a one-month low on Friday. This could be attributed to a decline in global bond markets, greatly affecting yields. In addition to this, investors’ sentiment was hurt by the prospect of distressed selling as heavy losses mounted.

MSCI’s broadest index of Asia-Pacific shares outside Japan plunged 2.4% to hit a one-month low. Japan’s Nikkei dropped 2.5%, while Chinese blue chips traded 2.5% lower.

Yields, on the other hand, stepped down from their record highs. The decline followed after Australia’s central bank decided to launch a bond-buying scheme in a bid to resolve the selloff in assets.

While the 10-year Treasury note eased from a one-year peak of 1.614%, it still jumped 40 basis points in February. This came to be the biggest increase yields had recorded since 2016.