Asian stocks were set to decline as surging oil prices pushed bond yields higher and stoked fears of resurgent inflation. US crude extended gains in early Asian trading after surging more than 5% in the previous session to top $90 a barrel. The oil shock helped push global bond yields to the highest since 2008 and weighed on equities at the start of a seasonally weak month.

The 10-year Treasury yield rose five basis points. Evercore's Guha noted that inflation, oil prices, and bond yields are of more importance to the Federal Reserve than US jobs data in determining whether to raise interest rates.