Global stocks wobble as crypto slumps and Japan's bond yields surge

Global markets wavered on Tuesday as investors reacted to a sharp selloff in cryptocurrencies and continued pressure on global bonds, driven largely by expectations of an imminent interest rate hike in Japan.

U.S. stock futures were steady, with the S&P 500 holding flat after Monday’s declines. Japanese government bonds stabilized following a strong JGB auction, though yields remained elevated: the 10-year yield briefly hit a 17-year high of 1.88%, while the 30-year reached a record peak.

Bitcoin clawed back slightly after Monday’s 5.2% plunge, trading around $87,000 — still 30% below its October high. Ether also posted modest gains. Market sentiment in crypto remains fragile, with analysts noting investor anxiety after the unexpected drop.

Across Asia, equities were mixed. MSCI’s Asia-Pacific index outside Japan gained 0.3%, the Nikkei edged up 0.1%, and South Korea’s Kospi led the region with a 1.6% rise. China’s CSI300 slipped 0.8%.

Speculation strengthened that the Bank of Japan may raise rates this month after Governor Kazuo Ueda signaled policy tightening. The prospect pushed global bond yields higher, including a jump in U.S. 10-year Treasury yields on Monday before easing slightly in Asian trading.

The yen remained firm, helping lift the euro while pressuring the U.S. dollar, which continues to face expectations of further Federal Reserve rate cuts. Recent U.S. data reinforced the likelihood of a December rate cut, with manufacturing shrinking again in November despite strong consumer spending.

Gold stayed above $4,200 an ounce, while Brent crude hovered near $63 amid concerns following drone attacks on Russian oil infrastructure.