"Dollar and US Yields Team Up for a Powerful Impact in Morning Bid"

Asian markets are expected to be cautious and nervous due to the strengthening US dollar and rising US bond yields, which are tightening financial conditions and deepening concerns over China. The dollar has risen for the 18th time in the last 24 sessions and is on track for its fifth consecutive weekly gain. The twin rise in the dollar and US bond yields is a red flag for emerging markets, with Chinese and aggregate emerging market financial conditions tightening sharply this month. Oil prices are also retreating due to fears of faltering demand from China. Chinese and regional shares are feeling the heat, with Chinese blue chip shares falling for a fourth day and global indexes falling in recent sessions.