Oil prices gained as the prospect receded of a deal to end the conflict in the Middle East. CLc1, LCOc1
U.S. crude CLc1 rose 1.55% to $86.26 a barrel and Brent LCOc1 rose to $92.07 per barrel, up 1.15% on the day.
Long-term borrowing costs from the U.S. to Germany and Japan have soared as investors grow increasingly anxious about ballooning government debt and elevated inflation, pressures compounded by the Iran conflict's impact on oil prices.
German and French long-dated bond yields, which had earlier risen to their highest in 15 and 18 years respectively, traded lower on the day DE10YT=RR, DE30YT=RR, FR10YT=RR.
"What we've seen in the course of recent days is that the long end of the bond market has obviously been selling off and potentially becoming somewhat problematic for the play through to other asset classes," Jeremy Stretch, head of G10 FX strategy at CIBC, said.
"Clearly, the Treasury Secretary has to be mindful of those risks and has made adjustments. That's why we are (now) seeing U.S. 30-year Treasury yields down sharply and the dollar cheapening."
A rise in Japan's benchmark 10-year bond yield JP10YTN=JBTC toward 3%, a three-decade high, is also a warning sign for global debt markets that for years have depended on low Japanese rates driving a constant flow of Japanese investment abroad.
Later on Wednesday, the U.S. Federal Reserve releases minutes from the July meeting. The central bank left rates on hold, but Chairman Kevin Warsh unsettled markets by offering few clues on how policymakers might respond to persistent inflation.
In China, shares in the world's biggest humanoid-robot maker, Unitree 688836.SS, soared 460% on its debut, a listing that was more than 8,000 times oversubscribed by retail investors.
Earlier, stocks across Asia fell on concerns about the outlook for semiconductor companies. South Korean shares closed nearly 6% lower, posting their biggest one-day drop in three weeks.
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