Asian shares slipped Friday after surging U.S. bond yields renewed pressure on high-flying technology companies. Tokyo’s Nikkei 225 index dropped as much as 2% and shares fell in most other markets.
Investors were disappointed with remarks by Federal Reserve Chair Jerome Powell on Thursday when he said inflation will likely pick up in the coming months, though he cautioned that the increase would be temporary and would not be enough for the Fed to alter low-interest rate policies set to help the economy recover from the pandemic.
Powell did not indicate the Fed might seek to rein in rising bond yields, which tend to draw money out of stocks into less risky bonds.