Asian shares came under pressure on Friday as inflation fears pushed US Treasury yields to one-year highs.
Oil prices kept climbing amid lack of progress to open the Strait of Hormuz. US President Trump said China wants to buy US oil.
All eyes are on Beijing where Trump wraps up his state visit. His entourage includes Tesla CEO Elon Musk and Nvidia CEO Jensen Huang.
Nvidia surged 4.4% after the US cleared sales of its H200 chips to Chinese firms. The S&P 500 and Nasdaq hit record highs.
However, euphoria failed to spread to Asia. MSCI's Asia-Pacific index fell 1.2%. Japan's Nikkei also dropped 1.2%.
South Korea's KOSPI topped 8,000 points but then fell 3%. China's blue-chips eased 1%, while Hong Kong's Hang Seng fell 0.9%.
US Treasury yields continue to rise. The 30-year yield hit 5.06%, highest since July 2025. The two-year yield rose to 4.056%.
The dollar is set for a 1.2% weekly gain, the most in two months. Markets see a 45% probability of a Fed rate hike this year.
