Asian stocks and bonds fell after a surge in oil prices sparked a selloff in US markets, while the latest inflation data reinforced bets on an imminent Federal Reserve interest-rate hike. The MSCI Asia Pacific Index fell 1.3%, led by declines in Japan and South Korea. Brent crude traded at $107.66 a barrel after climbing to almost $110.

Bonds came under further pressure after the Treasury bought back fewer securities than investors had anticipated, pushing 10-year yields to the cusp of 5%. Faster-than-expected producer price inflation data also boosted bets on a Fed hike next week. Asian government bonds followed Treasuries lower.

Australia’s three-year yield jumped as much as 20 basis points to 5.05%, its highest level since 2011, while New Zealand’s two-year yield climbed 24 basis points. The US 10-year yield was little changed at 4.96% on Friday. There were still some positive pockets in the markets.

Oracle Corp. shares gained about 6% in extended trading after the company reported faster growth in its cloud-computing business than analysts had projected. Friday’s US consumer price index report will now be a key test for risk sentiment, with investors looking to see whether higher energy costs are spilling over into broader price pressures.