Global markets turned risk-off on Friday. A sharp selloff in South Korean equities dragged technology stocks lower across regions.
Oil prices climbed on renewed concerns over disruptions in the Strait of Hormuz. Deutsche Bank said markets lost momentum after President Trump said the US doesn't need the Strait open.
Bond yields also moved higher globally on inflation fears and weak Treasury demand. Investors assessed the outcome of Trump's summit with President Xi in Beijing.
Asian equities retreated sharply, led by South Korea's KOSPI which fell 6.1%. Samsung Electronics dropped 8.6%, SK Hynix lost 7.7%, and Micron Technology fell 2.2% premarket.
US equity futures moved lower. S&P 500 and Nasdaq 100 futures were down 0.8% and 1.1% respectively. European markets also weakened; Germany's DAX fell 1.2%, while the FTSE 100 and CAC 40 declined roughly 1%.
Oil prices rose around 3%. The Strait of Hormuz effectively stayed closed. Brent futures were up 2.9% to $108.75, while crude futures jumped 3.2% to $104.42.
Trump departed Beijing after lengthy talks with Xi. The summit produced few concrete policy announcements but investors took encouragement from the warmer tone. Trump said both countries wanted the Iran conflict to end.
Government bonds sold off across major markets. The US 2-year yield climbed above 4.05%, while the 10-year yield approached 4.52%. In Japan, the 20-year yield surged to its highest since 1996.
