Asia report: Rising US bond yields dampen sentiment

Asian shares closed lower on Friday as rising US bond yields continued to worry investors.

Declines followed a weaker Wall Street close that left the Nasdaq down nearly 10% from its February record high, as remarks by Federal Reserve Chair Jerome Powell failed to reassure markets.

Powell said rises in yields were not "disorderly”, sending sending the 10-year yield to top 1.5%.

Japan’s Nikkei slipped 0.23% to 28,864.32 and recorded its second straight weekly loss. The broader Topix closed 0.61% lower at 1,896.18.

Uniqlo store operator Fast Retailing fell 3.39% and was the biggest drag on the Nikkei. Staffing agency Recruit Holdings declined 6.34%.

In China’s, blue-chip stocks closed slightly lower as investors mulled the modest above-6% annual growth target set in Premier Li Keqiang’s annual work report.

The blue-chip CSI300 index ended down 0.3% at 5,262.80, while the Shanghai Composite Index was almost unchanged at 3,501.99.

Li’s target for 2021 was below analyst forecasts as the economy emerges from a year disrupted by the effects of Covid-19.

South Korean shares closed at their lowest level in a week with the benchmark KOSPI down 17.23 points at 3,026.26.

Most heavyweight stocks were down, with Samsung Electronics 0.36% lower, while sector peer SK Hynix fell 1.41%. Internet giant Naver and battery maker Samsung SDI declined 3.58% and 1.03%, respectively.

Hong Kong shares were also down, with the benchmark Hang Seng Index down 0.47% at 29,098.29.