Asian markets cautious as oil gains, bond yields rise

Asian share markets opened cautiously on Monday as oil prices rose amid doubts over a US-Iran truce, while rising bond yields pressured markets ahead of a week of major economic data. Brent crude climbed 1.6% to $106.00 a barrel, adding to a 17% monthly gain. US President Donald Trump rejected an Iranian proposal to reopen the Strait of Hormuz over the weekend, though talks are set to continue. Higher diesel prices, driven by limited refining capacity, have raised inflation concerns, prompting central banks to hike rates. Markets now price a 66% chance of a Federal Reserve rate increase in October, with about 90 basis points of tightening expected by late next year. Japan's Nikkei rose 0.8%, while South Korean stocks fell 0.6% and MSCI's Asia-Pacific index outside Japan eased 0.2%. US 30-year Treasury yields neared their highest since 2004 at 5.5185%, and the dollar hit two-month peaks. Gold fell 0.5% to $4,262 an ounce, while the key US September payrolls report is due Friday.