Asian Shares Fall on US Treasury Yield Spike, Debt Concerns

Asian stock markets fell sharply following declines on Wall Street triggered by rising U.S. Treasury yields and fears that President Donald Trump's proposed tax cuts and spending plans would significantly increase the federal deficit. The spike in Treasury yields raised concerns about higher borrowing costs globally, contributing to investor anxiety and a weaker U.S. dollar, which negatively impacted Asian exporters. Major indices such as Japan's Nikkei 225, Hong Kong's Hang Seng, China's Shanghai Composite, and South Korea's KOSPI all experienced notable losses, with key blue-chip stocks and sectors including technology, automotive, and heavy industry retreating. Despite the downturn, some sectors in China, like banking and mining, showed resilience due to recent government rate cuts and a flight to safe-haven assets. Market analysts emphasize a cautious, wait-and-see approach amid uncertainty around U.S. fiscal policy and trade issues, while currency movements reflected safe-haven flows. Overall, U.S. fiscal concerns continue to weigh heavily on global investor sentiment and Asian market performance.