Asian Shares Mixed as Oil Surges on Iran War, US Yields Near 2007 Highs

Asian equities traded mixed on Thursday as investors weighed elevated oil prices tied to the Iran war and a surging U.S. bond market. Japan's Nikkei 225 rose 1.3% to 65,883.41 on AI-driven chip demand, while Australia's S&P/ASX 200 fell 0.7% to 8,700.50. Hong Kong's Hang Seng slipped 0.5% to 24,715.95, and the Shanghai Composite lost 0.8% to 3,902.33. South Korean markets were closed for the Chuseok holiday. Brent crude traded at $102.22 a barrel, down 0.83% but far above the roughly $72 level before the war with Iran began, amid concern that Middle East supply disruptions could persist. U.S. crude fell 0.82% to $91.40. Overnight, the S&P 500 dropped 0.8% to 7,706.03 after a strong U.S. business activity report stoked inflation fears. The 10-year Treasury yield jumped to 5.10% from 4.96%, briefly nearing 5.14%, its highest since 2007. Fed Gov. Michael Barr said further rate hikes "are likely to be needed." The dollar slipped to 157.94 yen; the euro traded at $1.1382.