Asian stocks cautious as oil gains, yields rise

Asian share markets opened cautiously on Monday as oil prices rose amid doubts over a US-Iran truce, while bond yields climbed ahead of a week packed with economic data. Brent futures gained 1.6% to $106.00 a barrel, adding to a 17% monthly rise. Central banks are responding with rate hikes, with markets pricing a 66% chance of a Federal Reserve increase in October and about 90 basis points of tightening through late next year. Strong US growth, forecast at 5.0% by the Atlanta Fed, supports equities despite higher yields. Japan's Nikkei rose 0.8%, while South Korean stocks dipped 0.6%. Thirty-year Treasury yields neared their highest since 2004, and the dollar hit two-month peaks, pressuring gold down 0.5% to $4,262 an ounce.