Asian equities were poised for early declines Friday after US stocks and bonds fell, extending a volatile week as Middle East tensions escalated. Equity index futures for Japan, Australia, Hong Kong and South Korea all traded lower, following a downbeat Wall Street session where the S&P 500 dropped 0.6%. Only energy, technology and consumer discretionary stocks showed resilience amid the broader market weakness.

Nvidia Corp. managed a minor gain despite semiconductor shares dropping 1.2%, after Bloomberg News reported the US is considering requiring permits for artificial-intelligence chip sales. The ongoing US-Israeli offensive against Iran has jolted global energy markets, pushing US crude near $81 a barrel amid concerns that disruptions through the Strait of Hormuz may constrain supplies. China, the top oil importer, is moving to conserve fuel, heightening inflation risks and market volatility if fighting persists.

The yield on 10-year Treasuries climbed four basis points to 4.14% on Thursday as a global bond rout showed no respite, with concerns that higher oil prices will fuel inflationary pressures that could hinder the Federal Reserve's ability to cut rates. The dollar added 0.4% while the yen retreated against the greenback. With crude prices touching their highest levels since July 2024, the Trump administration is weighing options for addressing the spike in oil and gasoline prices amid the war in Iran.