Asian stocks rise, bond yields stabilize ahead of US inflation data

Asian stocks rose Wednesday while bond markets stabilized after a sharp selloff, as investors awaited key US inflation data for clues on the Federal Reserve's next move. The MSCI Asia Pacific index gained 0.9%, with 10 of its 11 industry groups advancing. Japan's Nikkei 225 climbed 1.4%, South Korea's Kospi and Kosdaq both rose over 1%, and Australian shares were marginally higher. The moves followed a surge in long-term Treasury yields that raised concerns about persistent inflation and potential further Fed rate hikes. The 30-year yield hit 5.62% Tuesday, its highest since June 2002, while the 10-year reached 5.29%, a level not seen since June 2007. Oil prices remained a key uncertainty, with Brent rising 0.8% to about $103.40 per barrel. Chinese stocks extended gains after data showed the composite PMI rose to 50.7 in September, its highest since December 2025, indicating continued economic expansion.