BEIJING (dpa-AFX) - Asian stocks ended mixed on Friday as oil prices remained elevated and the U.S. Treasury Department's announcement to manage pressure in the bond market failed to quell lingering concerns about inflation and rising government debt.
The U.S. dollar was subdued and headed for a weekly loss as U.S. bond yields steadied after rebounding from lower levels on Thursday amid fears the U.S. Treasury's plan to curb borrowing costs is just a short-term fix.
Gold rose about 1 percent to $4,563 an ounce and was on track for a third consecutive weekly gain, supported by a weakening dollar and expectations of controlled longer-term Treasury yields.
Brent crude futures traded above $93 a barrel and were set for a second consecutive weekly gain amid the continuing standoff between Washington and Teran over control of the Strait of Hormuz.
U.S. Treasury Secretary Scott Bessent announced on Thursday that Washington will impose 'the toughest sanctions in history' on Iran, with full details of the sanctions expected next week.
China's Shanghai Composite index fluctuated before finishing marginally higher at 3,905.20, led by gains in AI and semiconductor shares.
Hong Kong's Hang Seng index rallied 1.21 percent to 26,009.46, extending gains from the previous session after the release of softer local inflation data.
Japanese markets closed lower after data showed Japan's headline inflation rose for a second month in July due to higher energy costs, adding pressure on the Bank of Japan to act on rates in September.
The Nikkei average dropped 0.30 percent to 66,016.36 due to Middle East concerns and investor anxiety over rising long-term interest rates in Japan and the U.S. The broader Topix index settled 0.19 percent higher at 4,067.29.
Among the prominent decliners, heavyweight Fast Retailing tumbled 3.6 percent and technology investor SoftBank fell 2.5 percent.
Seoul stocks rose sharply after reports emerged that Samsung Electronics will unveil a shareholder return scheme worth up to 110 trillion won later in the day.
While Samsung shares surged 3.9 percent, rival SK Hynix, which announced a plan to repurchase some 40 trillion won worth of common shares on Wednesday, added 2.3 percent. The Kospi index ended up 0.88 percent at 6,912.95.
Australian markets ended slightly lower, dragged down by technology and real estate stocks. The benchmark S&P/ASX 200 dropped 0.27 percent to 9,058.90, with gains in energy stocks helping limit the potential downside. The broader All Ordinaries index closed 0.31 percent lower at 9,269.70.
Across the Tasman, New Zealand's benchmark S&P/NZX-50 index rose 0.38 percent to 13,972.66, reversing an early slide on concerns about volatility in the U.S. bond market.
U.S. stocks fell sharply overnight as Walmart's quarterly comparable sales missed estimates and crude oil prices jumped over 2 percent to their highest levels in nearly a month, fueling inflation worries.
Bond yields resumed their upward trend despite Treasury Secretary announcing plans to potentially further increase the volume of government Treasury bond buybacks.
The Dow tumbled 1.3 percent, the tech-heavy Nasdaq Composite shed 1 percent and the S&P 500 declined 0.9 percent.
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