Asian stocks mixed as treasury yield extends rise

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A pedestrian passes an electronics stock indicator displaying individual stock prices on the Tokyo Stock Exchange in Tokyo in this file photo. — AFP

Asian shares traded mixed Friday, remaining on track for a weekly loss as investors mulled the implications of a jump in benchmark U.S. 10-year Treasury yields to their highest level since 2011. The dollar steadied near its strongest for the year.

News that China has offered President Donald Trump a $200 billion reduction in the bilateral trade gap with the U.S. had little immediate reaction early Friday. Japanese and Korean shares rose, Chinese and Hong Kong equities fluctuated while Australian stocks declined. The S&P 500 Index closed little changed after a direction-shifting session, though domestically focused U.S. small caps hit a fresh record. U.S. futures pointed to modest gains. Brent crude rose to a level unseen since 2014 amid mounting signs that global stockpiles are shrinking.

Investors are dealing with recent evidence that the world’s largest economy will continue its solid expansion, as well as issues stretching from peace talks on the Korean peninsula to populists taking power in Italy. Looming over it all are trade talks between the U.S. and China, the outcome of which could cement the global growth story — or derail it. China’s $200 billion trade-deficit reduction offer came in talks in Washington this week, a Trump administration official said.

The euro is heading for another weekly loss, while Italian bonds dropped this week as an agreement was sealed by populist parties to form a coalition government. The Turkish lira deepened its losses, while emerging-market stocks slipped. — Bloomberg