Bond Yield Surge Poses Threat to Asia’s AI-Fueled Stock Rally

Rising US bond yields pose a threat to Asia’s stock rally, as growing inflation fears offset ongoing optimism over benefits from the artificial intelligence boom.

Over the past five years, the MSCI Asia Pacific Index has fallen in 16 of the 19 weeks when the US 10-year Treasury yield rose by 20 basis points or more, losing 1.6% on average, according to data compiled by Bloomberg. Last week followed that pattern.