Market Volatility Surge as U.S. Data Shifts Rate Expectations

Asian shares declined and the U.S. dollar remained strong after a robust U.S. jobs report increased bond yields and potential interest rates. The jobs data impacts potential rate cuts, oil prices spiked due to reduced Russian crude shipments, while higher Treasury yields influenced corporate earnings forecasts.

Asian stock markets faced downturns on Monday, with the U.S. dollar retaining strength, following a robust payroll report that influenced bond yields and scrutinized equity valuations as the earnings season kicks off.

The job data has affected predictions for U.S. rate cuts, raising stakes for upcoming consumer price figures. Additionally, rising oil prices reached a four-month high amid dwindling Russian crude shipments, exacerbated by increased U.S. sanctions.

The hawkish rate environment propelled 10-year Treasury yields to peak levels not seen in 14 months, impacting the household and corporate decision-making environment as borrowing costs rose. Observers now anticipate potential challenges in corporate earnings as significant banks prepare to announce results on Wednesday.

(With inputs from agencies.)