financetom
World
financetom
/
World
/
GLOBAL MARKETS-Asian shares fall, yen and Treasuries rise as AI, Iran concerns weigh
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
GLOBAL MARKETS-Asian shares fall, yen and Treasuries rise as AI, Iran concerns weigh
Mar 11, 2026 5:51 AM

*

Yen rallies as geopolitical risks drive haven bids

*

Tech stocks pressured by high valuations

*

China to scrap FX reserves for some contracts

By Rocky Swift

TOKYO, Feb 27 (Reuters) - Dour sentiment persisted in

the Asian trading day on Friday as concerns about technology

company valuations weighed on shares and Middle East tensions

kept energy markets on edge.

Japanese shares followed Wall Street lower after what

appeared to be glowing results from AI sector bellwether Nvidia

failed to impress investors. The yen and U.S. Treasuries rose,

while gold held steady after a two-day advance.

An Omani mediator of U.S. and Iran nuclear talks gave an

optimistic readout over the latest round of negotiations, but

uncertainty still hung over energy markets with no sign of a

breakthrough that would avert potential U.S. strikes.

"AI and geopolitics remained front and centre for financial

markets, prompting a retreat from risk assets and a shift

towards safe havens," Mantas Vanagas, senior economist at

Westpac Group, wrote in a note.

"With no major breakthroughs announced in the U.S.-Iran

talks, crude markets remained in wait-and-see mode, continuing

to price in a significant risk of military escalation between

the two countries," he said.

MSCI's broadest index of Asia-Pacific shares outside Japan

was down 0.4%, while Japan's Nikkei stock index

slid 0.8%.

Nvidia posted better-than-expected results for the January

quarter on Wednesday and forecast current-quarter revenue above

market estimates. But U.S. shares ended lower and the company's

stock was flat in after-hours trading.

U.S. equity futures slid in Asian trading, with the S&P 500

E-minis down 0.41% and the tech-heavy Nasdaq 100 E-minis

dropping 0.36%.

"It seems 'the Street' simply wanted more, or perhaps just

isn't prepared to chase the stock at its current lofty

valuation," IG market analyst Tony Sycamore said about Nvidia's

results in a note.

The dollar index, which measures the greenback

against a basket of currencies, rose 0.04% to 97.77, with the

euro little changed at $1.1797.

The yen strengthened 0.2% to 155.86 per dollar.

Sterling was steady at $1.3482.

The U.S. and Iran plan to resume negotiations over Tehran's

nuclear program after consultations in their countries'

capitals, Omani Foreign Minister Sayyid Badr Albusaidi said in a

post on X after the day's meetings in Switzerland.

Any substantial move forward could curb chances for U.S.

President Donald Trump to carry out a threatened attack on Iran

that many fear could escalate into a wider war.

The yield on benchmark U.S. 10-year notes fell

1.5 basis points to 4.002%. The 30-year bond yield

fell 1.3 basis points to 4.6565%.

Data in Japan showed cooling inflation in Tokyo and

weaker-than-expected factory output, complicating the case for

policy rate increases by the central bank. The data came on the

heels of Prime Minister Sanae Takaichi putting forward two Bank

of Japan board nominees who share her fiscally dovish mindset.

China's central bank said on Friday it will scrap the

foreign exchange risk reserves for some forward contracts, a

move that would reduce the cost of dollar buying.

The yuan notched its biggest annual gain against the dollar

since 2020 last year, strengthening past the psychologically

important 7-per-dollar level, and the upward momentum has

continued into the new year.

In Britain, a by-election will be closely watched, as a

defeat for the Labour Party could add to pressure on British

Prime Minister Keir Starmer following criticism over several

recent policy reversals.

Polls say the vote in Gorton and Denton, in northwestern

England's Greater Manchester, is too close to call between

Labour, populist Reform UK and the left-leaning Greens.

Spot gold fell 0.23% to $5,175.03 an ounce, while

U.S. crude rose 0.09% to $65.27 a barrel.

In cryptocurrencies, bitcoin fell 0.3% to $67,290.45

and ether declined 0.68% to $2,016.78.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Copyright 2023-2026 - www.financetom.com All Rights Reserved