Asia-Pacific markets were set to open mixed on Wednesday as traders grappled with rising U.S. Treasury yields and escalating tensions between the U.S. and Iran.
The uncertainty surrounding the Strait of Hormuz and President Donald Trump's recent statements on military options have added to the volatility in global markets.
The 10-year Treasury yield has climbed to a new session high, reflecting investor concerns over inflation and potential policy responses.
This upward movement in yields has created a ripple effect across global equity markets, with Asia-Pacific indices showing signs of hesitation ahead of the open.
The renewed focus on U.S.-Iran relations has also contributed to the mixed sentiment.
Recent reports indicate that Trump is considering new military options in response to ongoing tensions, which has heightened geopolitical risk for traders.