"Middle East tensions and rising yields weigh on Asia shares"
The benchmark 10-year Treasury yield rose above 5%, reaching its highest level since 2007, as a strong U.S. economy led investors to expect high interest rates for an extended period. This, combined with concerns over a wider conflict in the Middle East, pushed global shares to seven-month lows. The surge in bond yields has tightened monetary conditions without central banks taking action, allowing the Federal Reserve to signal it will likely stay on hold at its policy meeting next week. Mega-cap companies such as Microsoft, Alphabet, Amazon, and Meta Platforms are set to report earnings this week, supported by strong consumer demand. The U.S. dollar remains strong, and the European Central Bank is expected to leave interest rates unchanged.