Asian stocks step back from record highs on rising bond yields, weak US data

Asian stocks pulled back from all-time peaks on Friday as higher longer-dated bond yields and underwhelming U.S. data dented investor confidence in a faster economic recovery from the COVID-19 pandemic, while gold hit a seven-month trough.

Since the start of the year, the index has surged nearly 10.5per cent largely led by easy monetary and fiscal policies around the world. Core bond yields have pushed higher globally led by the so-called"reflation trade" where investors wager on a pick-up in growth and inflation. Successful coronavirus vaccine roll-outs so far and hopes of massive fiscal spending under U.S. President Joe Biden have spurred reflation trades.

An unexpected increase in the number of Americans seeking jobless benefits hung heavy on outlook. The Labor Department reported initial unemployment claims rose by 13,000 to 861,000, injecting skepticism about how quickly the U.S. economy could rebound from the global pandemic.On Wall Street, the Dow fell 0.38per cent, the S&P 500 lost 0.44per cent, and the Nasdaq Composite 0.72per cent.The British pound hit its highest in over three years at US$1.

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