Asian markets experienced declines on Thursday, following a trend set by Wall Street as concerns over increasing Treasury yields and doubts about potential US interest rate cuts weighed on investor sentiment.
 
The prolonged sell-off in equities, spanning over a week, was driven by better-than-expected economic data and cautious remarks from Federal Reserve officials signaling a reluctance to ease borrowing costs.
 
A consecutive day of lackluster demand in a Treasuries auction contributed to the upward trend in yields, heightening worries among traders.
 
Focus now shifts to the release of the personal consumption expenditures (PCE) index on Friday, as investors await clues regarding inflation trends that could influence the Fed's monetary policy decisions.
 
While the Fed's "Beige Book" report hinted at a somewhat subdued economic outlook, with discretionary spending cooling and job gains remaining modest, inflation continues to surpass the central bank's target of two percent.
 
Eric Johnston of Cantor Fitzgerald suggested that the recent surge in Treasury yields may be attributed to supply dynamics and fiscal deficits rather than concerns about inflation or economic strength.
 
In New York, all three major indexes registered losses, with the Dow dropping over one percent, setting a bearish tone for Asian markets.
 
Tokyo's Nikkei 225 fell over one percent, while Hong Kong, Shanghai, Singapore, Seoul, Wellington, Taipei, Manila, and Jakarta also witnessed declines.
 
Sydney saw losses, with mining giant BHP retracting around 1.5 percent following the abandonment of its proposed $49-billion takeover bid for British rival Anglo American.
 
Comments from various Fed officials have tempered hopes for a monetary policy shift, with Atlanta Fed chief Raphael Bostic suggesting a potential rate cut by the end of the year, contingent upon inflation and labor market developments.
 
Key figures at 0230 GMT included the Nikkei 225 down 1.5 percent, Hang Seng Index down 0.7 percent, and Shanghai Composite down 0.1 percent. Currencies saw the dollar weakening against the yen, euro, and pound, while oil prices remained relatively stable.
 
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