Most Asian share indices were on course for weekly declines as global bond-market stress returned, oil prices reached one-month highs and inflation concerns intensified. U.S. Treasury yields resumed rising after Wednesday’s surprise intervention by Treasury offered barely a day of relief, despite U.S. Treasury Secretary Scott Bessent signaling possible increases in Treasury repurchases and raising fiscal consolidation as an option. Analysts questioned whether spending cuts could materially reduce a budget deficit exceeding 6% of gross domestic product, while interest costs alone were projected at $1.2 trillion this year. The Nikkei fell 0.8% and was down 4.4% for the week, while the broader MSCI Asia-Pacific index outside Japan rose 0.5%. Oil gained after Bessent said the U.S. would impose “the toughest sanctions in history” on Iran, dimming hopes of a deal to fully reopen the Strait of Hormuz. Brent remained more than 5% higher for the week. The dollar was down almost 0.9% against its index basket as investors focused on U.S. debt and policy uncertainty, while gold gained 3.1% for the week. Japanese core inflation accelerated in July, adding to expectations for a September Bank of Japan rate increase, although markets already price a quarter-point move to 1.25%.