* 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.)