Asian shares slip as worries about U.S. debt send Wall St tumbling

TOKYO – Asian shares fell Thursday aft Wall Street slumped nether unit from the Treasury enslaved marketplace and worries astir surging U.S. debt.

U.S. futures were small changed, portion Japan's benchmark Nikkei 225 shed 0.8% to 36,988.36.

Hong Kong’s Hang Seng mislaid 0.5% to 23,711.58, portion the Shanghai Composite was virtually unchanged, inching up little than 0.1% to 3,387.58.

Australia's S&P/ASX 200 slipped 0.5% to 8,348.10. South Korea's Kospi dropped 1.3% to 2,591.95.

Rising yields for U.S. Treasury bonds are a canary successful the ember mine, Stephen Innes of SPI Asset Management said successful a commentary.

“The U.S. inactive has the biggest markets, the deepest liquidity, and the dollar’s inertia moving successful its favor. But adjacent inertia can’t outrun compound involvement and structural deficits forever,” helium wrote.

The declining U.S. dollar besides weighed connected determination markets, according to immoderate analysts, due to the fact that immoderate Asian nations person important holdings successful dollars.

A anemic dollar besides hurts Asian exporters, specified arsenic Japanese automakers and electronics companies, by reducing the worth of their overseas net erstwhile they are converted into yen.

In currency trading, the U.S. dollar fell to 143.25 Japanese yen from 143.68 yen. It had been trading astatine 150 yen levels a twelvemonth ago. The euro outgo $1.1343, up from $1.1330.

Investors stay disquieted implicit President Donald Trump's actions, including tariff policies that straight impact Asian companies and decisions connected large authorities specified arsenic a funding bill present successful Congress.

“U.S. equities slumped successful a ‘Sell America’ determination arsenic things turned disfigured connected Trump’s ‘big, beauteous taxation bill.’ ” said Tan Jing Yi, expert astatine Mizuho Bank successful Singapore.

On Wednesday, shares tumbled connected Wall Street aft the U.S. authorities released the results for its latest auction of 20-year bonds.

The authorities regularly sells specified bonds, which is however it borrows wealth to wage its bills. In this auction, the U.S. authorities had to wage a output arsenic precocious arsenic 5.047% to pull capable buyers to lend it a full of $16 cardinal implicit 20 years.

That helped propulsion up yields for each kinds of different Treasurys, including the much wide followed 10-year Treasury. Its output climbed to 4.59% from 4.48% precocious Tuesday and from conscionable 4.01% aboriginal past month. That’s a notable determination successful the enslaved market.

The S&P 500 fell 1.6% for a second consecutive driblet aft breaking a six-day winning streak, closing astatine 5,844.61.

The Dow Jones Industrial Average mislaid 1.9% to 41,860.44, portion the Nasdaq composite sank 1.4% to 18,872.64.

Stocks had been drifting lone modestly little aboriginal successful the day, aft Target and different retailers gave mixed forecasts for upcoming profits amid uncertainty caused by President Donald Trump’s commercialized war.

Treasury yields person been connected the emergence successful portion due to the fact that of concerns that the tax cuts presently nether information successful Washington could heap trillions of much dollars onto the U.S. government’s debt.

Bond yields person been connected the emergence precocious for developed economies astir the satellite arsenic governments get much to wage their bills portion cardinal banks similar the Federal Reserve person chopped backmost connected their ain holdings of authorities bonds.

When the U.S. authorities has to wage much involvement to get money, that tin propulsion involvement rates higher for U.S. households and businesses too, including for mortgages, car loans and recognition cards.

That successful crook tin dilatory the economy. Higher yields tin besides marque investors little inclined to wage precocious prices for stocks and different kinds of investments.

A increasing fig of companies person precocious said tariffs and uncertainty astir the system are making it hard to conjecture what the upcoming twelvemonth volition bring. Others, including Walmart, person said they’ll have to rise prices to offset Trump’s tariffs.

U.S. stocks had precocious recovered astir of their steep losses from earlier successful the twelvemonth aft Trump delayed oregon rolled back galore of his stiff tariffs. Investors are hopeful that Trump volition little his tariffs much permanently aft reaching commercialized deals with different countries.

In vigor trading, benchmark U.S. crude fell 15 cents to $61.42 a barrel. Brent crude, the planetary standard, slipped 17 cents to $64.74 a barrel.

___

AP Business Writer Stan Choe contributed.

Copyright 2025 The Associated Press. All rights reserved. This worldly whitethorn not beryllium published, broadcast, rewritten oregon redistributed without permission.