Asia Markets Edge Down Amid Rising Treasury Yields and Oil Prices

Major Asian share indexes slipped amidst rising Treasury yields influenced by strong U.S. payrolls data. The dollar held firm near 14-month peaks, while oil prices surged due to decreased Russian shipments and new U.S. sanctions. Market expectations for Federal Reserve rate cuts have adjusted accordingly.

Asian stock markets took a downturn on Monday, driven by an increase in Treasury yields following a robust U.S. payrolls report. This economic data propelled the dollar near 14-month highs, compelling investors to reassess asset valuations amid the onset of earnings season.

In the commodities sector, oil prices spiked to their highest in four months due to a drop in Russian shipments, exacerbated by heightened U.S. sanctions. Adding to global economic indicators, China reported an unexpected improvement in December export growth, despite looming trade threats from the new U.S. administration.

With the Federal Reserve expected to cut rates only once by mid-year, the yield on 10-year Treasuries surged to 4.79%, raising stakes for corporate earnings. Concurrently, concerns about global equity valuations intensified as borrowing costs for businesses climbed.

(With inputs from agencies.)