Investors remain cautious as they await key economic data from the U.S. Market turbulence, driven by concerns over rising bond yields and economic uncertainty, has led to a tentative recovery in Asian stocks following significant losses earlier in the week, mirroring Wall Street's struggle.

The MSCI’s broadest index of Asia-Pacific shares outside Japan edged up 0.3%, a modest rebound after hitting a 10-month low. However, Japan’s Nikkei 225 dipped 0.1% after recouping some losses earlier in the session, reflecting mixed sentiment across regional markets.

Recent volatility in global markets has largely been attributed to the surge in U.S. Treasury yields, which have reached multi-year highs. The benchmark 10-year U.S. Treasury yield climbed to 4.35%, its highest level since 2007, triggering a sell-off in equities as investors weighed the impact of higher borrowing costs on corporate profits and economic growth.

Higher bond yields generally make stocks less appealing by increasing borrowing costs and reducing the present value of future earnings. This shift has led to a broad reassessment of risk, with global markets experiencing a sharp downturn. Analysts explained that the rise in yields is putting pressure on riskier assets, forcing a revaluation of stocks, particularly in high-cost sectors like technology.