On Friday, Asia-Pacific markets are set to decline as they react to a sharp pullback on Wall Street, where long-dated U.S. Treasury yields have rebounded. Specifically, Japan's Nikkei 225 is projected to fall, with futures indicating a drop to 65,560, down from the previous close of 66,216.79.
Similarly, Hong Kong's Hang Seng index futures are slightly lower at 25,696 compared to the last close of 25,698.49. Australia's S & P/ASX 200 futures are also down, trading at 8,991 versus a previous close of 9,083.80. The market sentiment is further influenced by escalating tensions between the U.S. and Iran, as U.S.
Treasury Secretary Scott Bessent announced intentions to impose unprecedented economic isolation on Iran, suggesting that this strategy aims to prevent any large-scale military conflict. This geopolitical uncertainty, combined with rising Treasury yields, is likely to weigh on investor sentiment in the region