Japanese government bond yields surged after a sharp overnight sell-off in U.S. Treasuries, with the 10-year yield reaching its highest level in 30 years as markets priced persistent inflation and possible further central bank rate hikes. Asian equities were mixed: the MSCI Asia ex-Japan index fell 0.64%, Japan's Nikkei 225 gained 1.73% and Australia's S&P/ASX 200 dropped 1.2% to a more than three-month low. Investors also tracked Middle East tensions after U.S. President Donald Trump warned he could "annihilate" Iran, while Iran's president vowed not to yield. Oil prices eased from recent highs, gold rose and the U.S. dollar retained safe-haven support. Markets awaited U.S. jobless-claims data, new-home-sales figures and speeches from Federal Reserve officials, including New York Fed President John Williams and Fed President Beth Hammack. Hopes for progress at a meeting between Trump and Chinese President Xi Jinping also remained in focus, although major breakthroughs were not expected; Treasury Secretary Scott Bessent said Washington and Beijing had reached a deal to extend their 11-month trade truce.