Asian markets extend rally as traders assess US Treasuries pledge
Asian stock markets saw modest gains as investors reacted to US Treasury efforts to stabilize long-term bond yields. Despite government pledges to increase bond buybacks, market skepticism remains high due to inflation concerns and geopolitical tensions in the Strait of Hormuz.
Why it matters
Fluctuations in US Treasury yields have global implications for borrowing costs and investor confidence in international markets.
Visitors walk past screens displaying current market information at Japan Exchange Group's Tokyo Stock Exchange in Tokyo, Japan, on Apr 6, 2026. (PhotoL: REUTERS/Issei Kato)
HONG KONG: Asian stocks edged higher on Friday (Aug 21) as investors assessed the US Treasury's move to push down long-term bond yields, while analysts warned that alone would not be enough to keep borrowing costs from spiking.
Treasury Secretary Scott Bessent's pledge that he had more tools to provide support did little to comfort US markets as sceptical Wall Street investors resumed their selling amid concerns over elevated inflation and government borrowing, among other things.
The lack of progress on reopening the Strait of Hormuz added to unease on trading floors, with oil prices gradually rising over the past two weeks as the United States and Iran remain deadlocked.
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