Stocks fell with bonds after President Donald Trump said the US doesn’t need to reopen the Strait of Hormuz, deepening concerns in markets about quickening inflation and fading momentum in the artificial intelligence trade.
Crude oil climbed. MSCI’s Asian share index dropped 1.1%, while US equity-index futures slipped 0.2% as Trump’s comment added to speculation that oil prices will stay elevated for longer.
Bloomberg’s gauge of the dollar rose for a fifth day. The inflation concerns weighed on government bonds, with the Treasury two-year yield climbing three basis points to 4.05% and the 10-year adding four basis points to 4.52%.
Japan’s 10-year yield jumped as much as seven basis points after data showed producer prices in the nation rose at the fastest annual pace since 2023.
Brent crude extended gains to more than 1% to trade above $107 per barrel after Trump said “they need the Strait more than we need it open, we don’t, we don’t need it at all.” The commodity has jumped about 75% this year.
