Asian Shares Mostly Lower On Inflation, Rate Concerns

(RTTNews) - Asian stocks retreated on Thursday, even as Japan's Nikkei rose notably as Tokyo markets reopened after a three-day holiday. A cautious undertone prevailed after oil prices rose sharply overnight and U.S. bond yields jumped to their highest levels in nearly two decades on inflation concerns stemming primarily from surging global energy prices amid the prolonged West Asia conflict. The U.S. dollar index clung to a two-month high as a strong manufacturing reading prompted traders to reprice their rate-hike bets. Markets currently price in a 55 percent chance of a Federal Reserve rate hike next month, according to the CME's FedWatch tool. The U.S. 10-year Treasury yield held steady after reaching the highest since 2007 overnight.