Asia's equity markets closed broadly lower as crude oil climbed and investors repriced central bank rate trajectories higher. Rising energy costs intensified inflationary pressures, forcing policy makers to weigh sustained monetary tightening against recession risks—a dynamic that drained risk appetite across the region.
U.S. Treasury yields rose sharply as the market demanded higher compensation for duration risk. The yield curve steepened modestly, with the persistent inversion between shorter and longer maturities signaling recession concern. The U.S. dollar index gained 0.3 percent to 105.9, a classic safe-haven bid during global uncertainty.
U.S. equities showed limited resilience—the S&P 500 rose 0.9 percent to 7,657—but market breadth remained thin. Technology and real estate, both sensitive to borrowing costs, came under renewed pressure as investors braced for extended monetary restrictiveness.
