TOKYO - The US dollar firmed in Asia on Thursday and Treasury yields ticked higher as investors assessed the outlook for tariffs and the economy under US President Donald Trump.
Asian stocks were overall weaker in volatile trading, with tech shares around the region getting little steer from heavyweight US chipmaker and artificial intelligence darling Nvidia's earnings.
Cryptocurrency bitcoin languished near the $85,000 mark, while safe-haven gold was steady some $64 an ounce below its record high as trade war worries kept market sentiment fragile.
Trump clouded the outlook for looming levies on top trading partners Canada and Mexico on Wednesday by signalling they would take effect on April 2, which would be another month-long extension.
However a White House official later said the previous March 2 deadline for the levies remained in effect "as of this moment", stirring further uncertainty about US trade policy.
US two-year Treasury yields rose to 4.09 percent, finding their footing following a slump to the lowest since November 1 at 4.065 percent in the prior session. The 10-year yield rose to 4.2809 percent from a low of 4.245 percent on Wednesday, a 2-1/2-month trough.
The dollar and US yields have been under pressure in recent weeks as a run of soft economic indicators have combined with growth worries arising from Trump's tariff plans.
Traders have raised bets for Federal Reserve interest rate cuts in recent days, now seeing two quarter-point reductions this year, with the first likely in July and the next as early as October.
Markets will look at GDP and durable orders data due on Thursday for any stronger signs of slowdown, while the Fed's preferred inflation gauge, the Personal Consumption Expenditure (PCE) index, is due on Friday.
"Markets are starting to feel less confidence about US growth," said Shoki Omori, chief global desk strategist at Mizuho Securities.
"I think US data surprises will continue to be towards the downside," although as economists start to adjust their forecasts towards weaker outcomes, and with inflation still "sticky", 10-year Treasury yields are unlikely to fall below 4 percent, Omori said.
The US dollar index, which measures the currency against six major rivals, rose 0.24 percent to 106.70, continuing its climb off a 2 1/2-month low of 106.12, reached earlier this week.
In equities, Japan's Nikkei added 0.25 percent and Australia's benchmark index rose 0.33 percent. However, South Korea's Kospi slid 0.91 percent and Taiwan shares dropped 1.49 percent.
Pan-European STOXX 50 futures shed 0.5 percent.
US Nasdaq futures pointed 0.3 percent higher following a 0.3 percent rise in the regular session overnight, while S&P 500 futures gained 0.3 percent after the cash index ended the day flat.
Nvidia shares slipped 1.5 percent in extended trading following a 3.7 percent rally in regular trading on Wednesday. After the closing bell, the chipmaker published a strong growth forecast for the first quarter, although investors are accustomed to big beats from the company.
"Nvidia's earnings came with much less volatility than expected," said IG analyst Jun Rong Yeap.
"The absence of major surprises may have kept sentiment relatively calm," Yeap said.
"Sellers may find fault with its slight gross margin decline, but ... note that this stems from newer data centre products - ultimately beneficial for long-term growth."
Bitcoin edged up to $85,835 following a nearly 12 percent tumble over the first three days of this week.
Bitcoin bull Geoff Kendrick, global head of digital assets research at Standard Chartered, cautioned against buying the dip just yet in a note to clients.
"Stay patient," he said. "These types of losses rarely end well and I still think the big capitulation is yet to come."
Gold eased back to $2,891 per ounce.
Crude oil ticked up from two-month lows it hit following a surprise build in US fuel stockpiles.
Brent crude futures added 0.3 percent to $72.75 a barrel. US West Texas Intermediate crude oil futures gained 0.17 percent to $68.74.
