Asian Stocks Open Lower, US Yields Rise to 4%
Asian stocks opened lower on Tuesday (March 3), dragged down by rising energy prices, which fueled inflation concerns and prompted investors to scale back expectations for interest rate cuts. Pressure was evident from the start of trading, particularly in Japan and South Korea, which resumed trading after a long holiday.
Global sentiment also tended to be cautious. Futures on the S&P 500 and Nasdaq 100 indices edged lower after Wall Street pared early losses on Monday and closed largely unchanged. Markets assessed that the conflict remained a significant risk, but its short-term financial impact had not yet completely spiraled out of control.
In the currency market, the dollar maintained its strength, while WTI held steady after a sharp surge in the previous session. In Europe, natural gas prices surged after Qatar shut the world's largest LNG export facility, confirming that energy disruptions are now a dominant factor in market movements.
Rising energy costs have begun to hit the bond market. Inflation concerns have prompted investors to dump debt, pushing the 10-year US Treasury yield up to around 4.03%. Meanwhile, the market is now fully projecting the first US interest rate cut to occur in September, while the chances of additional cuts in 2026 are diminishing.
Comments from US officials have added to the uncertainty. President Donald Trump stated there is no definitive timeline, while Defense Secretary Pete Hegseth rejected the narrative of an “endless war.” Secretary of State Marco Rubio also suggested the intensity of attacks would increase, stating that the next phase “will be more severe,” further prolonging geopolitical risks.
In Australia, 10-year bond yields also surged after RBA Governor Michele Bullock stated that the central bank is “very vigilant” about the impact of the conflict on inflation expectations and is ready to respond if necessary. Some analysts believe the market still views the conflict as a relevant geopolitical risk, but it is “for now” financially manageable—with the caveat that the situation could change rapidly if oil prices rise sharply and remain high. (asd)
Source: Newsmaker.id
