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GLOBAL MARKETS-Asia markets brace for Trump's promised assault on Iranian infrastructure
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GLOBAL MARKETS-Asia markets brace for Trump's promised assault on Iranian infrastructure
Apr 5, 2026 6:33 PM

* US president begins countdown to launch infratructure

attacks by Tuesday

* Brent crude surges above $110 per barrel, stocks mixed

* Yield on 10-year JGB hits highest since February 1999

on inflation concern

By Gregor Stuart Hunter

SINGAPORE, April 6 (Reuters) - Oil prices rose, bonds

fell and stocks were mixed at the start of trading in Asia on

Monday as U.S. President Donald Trump vowed "hell" if Tehran

does not meet his deadline to reopen the Strait of Hormuz.

Trump's repeated threats to destroy civilian infrastructure

including power plants and bridges if the vital waterway is not

open by Tuesday have put traders on edge for reciprocal attacks

by Iran on targets in the Gulf states.

With liquidity thin as many countries around the region

observed holidays on Monday, S&P 500 e-mini futures sank

0.2%, while MSCI's broadest index of Asia-Pacific shares outside

Japan was up 0.5%. The Nikkei 225 rose

1.2%, as South Korea's Kospi advanced 2%.

Brent crude futures opened higher, rising 1.4% to

$110.58 a barrel after members of the OPEC+ agreed on Sunday to

raise its oil output quotas by 206,000 barrels per day for May.

However, the increase will exist only on paper for several major

producing countries behind the Strait of Hormuz that have

sustained damage to oil production facilities and transport

infrastructure since the war started.

"This week will continue to be dominated by developments in

the Middle East, though a heavy slate of data releases -

including the FOMC March minutes, February personal income, and

March CPI - will compete for attention," said Yardeni Research

president and chief investment strategist Ed Yardeni, referring

to the Federal Open Market Committee which sets U.S. monetary

policy.

"Trump warned Iran that unless the Strait is opened

immediately, Monday will be Obliteration Day, when the U.S. will

bomb Iran's electric power plants," he wrote in a research

report.

On Friday, the S&P 500 closed up 0.1% after the U.S. jobs

report showed employment growth rebounded more than expected in

March, with a 178,000 increase in nonfarm payrolls representing

the biggest increase in more than a year. The unemployment rate

fell to 4.3% from 4.4%, as people dropped out of the workforce.

The data complicates the picture for the Federal Reserve,

which will next decide on monetary policy at a two-day meeting

ending on April 29. However, swaps pricing indicates the market

is expecting no moves at all from the U.S. central bank until

September 2027, according to the CME Group's Fedwatch tool.

The U.S. dollar index, which measures the greenback's

strength against a basket of six currencies, was steady at

100.23. The yield on the U.S. 10-year Treasury bond was up 4.7

basis points at 4.3584%.

In Japan, the yield on the Japanese government bond set a

fresh record for the 21st century on concerns about rising

inflation. The yield on the notes was up 2.0 basis points at

2.4%, the highest since February 1999. Against the yen,

the U.S. dollar was flat at 159.635 yen.

Gold slid 0.8% to $4,638.54. In cryptocurrencies,

bitcoin was up 1.9% at $68,915.85, while ether

gained 2.4% to $2,117.61.

(Reporting by Gregor Stuart Hunter; Editing by Lincoln Feast.)

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