Asian equities were heading toward weekly losses Friday as elevated U.S. bond yields and oil prices kept pressure on risk assets, while Bitcoin and gold extended sharp gains.
Japan’s Nikkei fell as much as 0.8% early in the session and remained on course for a weekly decline of roughly 4%. South Korean and Taiwanese stocks recovered modestly Friday but were also set to finish the week lower.
The weakness follows a global selloff driven by rising long-term borrowing costs. The U.S. 30-year Treasury yield returned to around 5.25%, while the 10-year yield approached 4.7%, levels that have weighed heavily on expensive technology and growth stocks.
Bond Stress Keeps Pressure on Stocks
Treasury Secretary Scott Bessent’s decision to expand purchases of longer-dated government debt initially pushed yields lower, but the relief proved short-lived.
Investors remain concerned about a U.S. debt load above $40 trillion, a federal deficit exceeding 6% of GDP and annual interest costs above $1.2 trillion. Those pressures have made markets increasingly sensitive to Treasury supply and fiscal policy.
The same relationship was visible earlier this month when falling yields helped lift the S&P 500. This week, the move has reversed.
Oil has added another source of pressure. Brent briefly reached $94.71 a barrel amid renewed U.S.-Iran tensions before easing back.
Bitcoin and Gold Move Higher Together
While equities struggled, scarce assets rallied. Bitcoin gained almost 20% this week, reaching a two-month high as the dollar weakened and fiscal concerns returned to the forefront.
The latest Bitcoin price move has revived debate over whether BTC can behave as a store of value during periods of bond-market stress. The cryptocurrency’s recent performance contrasts with earlier episodes when its correlation with technology stocks undermined the safe-haven argument.
Gold offered a more traditional version of the trade. Spot prices climbed as high as $4,601.29 an ounce Friday, a three-month peak, and were headed for a third consecutive weekly gain. A weaker dollar and renewed concerns about U.S. debt supported demand.
The two assets have traded very differently at points this year, with the recent gold vs. Bitcoin relationship shifting rapidly as macro conditions changed.
Wall Street also began recovering Friday after Thursday’s sharp decline, but major U.S. indexes remained on course for weekly losses. Nvidia’s upcoming earnings now represent the next major test for the AI trade and broader risk appetite.
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