Sydney — Asian shares regained some poise on Friday after a tough week in which the gathering risk of a US rate rise lifted treasury yields towards nine-year highs and boosted borrowing costs across the region. Activity was mainly confined to book-squaring for the end of the month and quarter, and moves in markets were modest at best. MSCI’s broadest index of Asia-Pacific shares outside Japan inched up 0.2%, but was still down a sizable 2% for the week so far. Japan’s Nikkei was off 0.2%, although South Korea managed to recoup 0.5%. Shanghai shares firmed 0.3% but were flat on the week. Many markets in the region have been cold-shouldered this week as investors priced in a greater probability of a rate increase from the Federal Reserve in December. Fed funds futures imply around a 73% chance of a move at the December 12-13 policy meeting. As a result, yields on two-year treasuries reached a near nine-year top before settling at 1.46% on Friday. They had been as low as 1.254% early i...
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