Asia markets sink amid rising global yields

May 20, 2026 (MLN): Asian markets retreated on Wednesday as investors grappled with rising global bond yields and renewed geopolitical uncertainty after U.S. President Donald Trump said he had come “an hour away” from approving a strike on Iran before deciding to delay the move for several days.

Investor sentiment remained under pressure as concerns over resurgent inflation continued to drive a selloff in global bond markets. Yields on U.S.

Treasurys stayed elevated, with the benchmark 30-year Treasury yield hovering near 5.17% after briefly touching 5.197% during the session its highest level since July 2007, according to CNBC.

In Japan, yields on super-long government bonds eased slightly after surging to record highs earlier this week. The 30-year Japanese government bond (JGB) yield fell more than 3 basis points to 4.122%.

However, shorter-dated debt remained under pressure, with the 5-year JGB yield climbing to a record 2.041%.

Regional equity markets broadly traded in negative territory. Japan’s Nikkei 225 dropped 1.29%, while the TOPIX lost 1.45%. South Korea’s KOSPI declined 0.69%, and the small-cap KOSDAQ slid 2.23%.

In Australia, the S&P/ASX 200 fell 0.85%, while Hong Kong’s Hang Seng Index shed 0.55%. Mainland China’s CSI 300 also slipped 0.3%.

Meanwhile, U.S. stock futures edged slightly higher in Asian trading hours. Futures linked to the S&P 500 rose 0.14%, Nasdaq-100 futures gained 0.25%, and Dow Jones Industrial Average futures added 55 points, or 0.11%.

On Wall Street overnight, U.S. equities closed lower for a third consecutive session as surging bond yields dampened investor appetite for risk assets.

The S&P 500 fell 0.67% to close at 7,353.61, while the Nasdaq Composite dropped 0.84% to 25,870.71. The Dow Jones Industrial Average declined 322.24 points, or 0.65%, ending the session at 49,363.88.

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