Asian shares decline as optimism fades, US bonds steady

Asian shares edged lower for the second consecutive day after a record-breaking rally lost steam.

Meanwhile, treasuries held gains post rising in US trading amid mixed economic data from the country.

Stocks opened in the red in Japan and South Korea on Thursday. A gauge of global stocks as well as the S&P 500 Index posted first declines of 2026 on Wednesday. Samsong Electronics declined 1.5% even as its quarterly profit more than tripled to a record high on global demand for AI servers.

Treasury 10-year yields fell three basis points to 4.15% Wednesday after data showed signs of weakness in US employment, which kept alive bets for at least two Federal Reserve interest-rate cuts this year. Gold and silver steadied after falling for the first time this week.

“The data flow overnight was relatively mixed and that manifested as a mixed session on global markets,” Kyle Rodda, a senior analyst at Capital.com, wrote in a note. “The macroeconomic data also added to the choppiness on Wall Street.”

The moves were a sign the optimism that has boosted risk assets since the start of the year may be starting to wane in the face of rising geopolitical uncertainty and a mixed outlook for the global economy. A busy calendar awaits traders this week, with Friday’s US payrolls report coinciding with a Supreme Court ruling on President Donald Trump’s global tariffs.

Stocks have been rallying on optimism over solid earnings growth and inflation remaining sufficiently contained for the Fed to keep cutting borrowing costs. That rosy view has persisted despite a worsening geopolitical backdrop, including US actions in Venezuela, its threats of intervention elsewhere and rising tensions between China and Japan.

Global affairs remained in focus Wednesday as US forces seized two more sanctioned oil tankers as part of its energy quarantine of Venezuela. European leaders closed ranks behind Denmark as President Donald Trump amplified threats to seize Greenland.

Elsewhere, China started an anti-dumping probe into a key chipmaking material from Japan, escalating a dispute between Asia’s largest economies.

In commodities, copper slid from a record high Wednesday, declining along with other industrial metals, as traders booked profits from a swift run-up in prices. Futures for copper, nickel and zinc declined more than 2% at the close of trading on the London Metal Exchange.

Oil edged higher amid more measures from the US regarding Venezuela, including a plan to indefinitely control future crude sales and the seizure of two more sanctioned tankers.

With inputs from Bloomberg

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