(Bloomberg) — Asian stocks look set to track a rebound in U.S. equities as traders assess the resilience of the economic recovery to elevated inflation fanned by surging energy costs. Treasury yields advanced and the dollar remained higher.

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Futures rose Wednesday in Japan, Australia and Hong Kong and U.S. contracts edged up. Bargain-hunting for technology stocks that bore the brunt of a recent selloff boosted the S&P 500 and Nasdaq 100.

The 10-year Treasury yield spiked above 1.50%. The highest U.S. natural gas prices in 12 years highlighted inflation threats from energy prices, while service-sector activity was faster than expected, backing the case for a reduction in Federal Reserve bond-buying. Traders are awaiting labor market data later this week for more clues about the Fed policy outlook.

Worries about China’s highly-leveraged property sector and broad regulatory crackdown on private industries continue to shadow sentiment. On Tuesday, representatives of Man Group, Soros Fund Management and Elliott Management raised concerns about the outlook for Chinese stocks. The nation’s markets are closed for a holiday and reopen Friday.

Volatility has picked up in global markets as investors brace for a slower but still robust economic recovery from the pandemic and gradual monetary-policy tightening to contain price pressures. Political gridlock in the U.S. over the nation’s debt ceiling and President Joe Biden’s wider economic agenda is contributing to the uncertainty.

“The short-term macro outlook is complicated by the energy price spike,” Chris Iggo, chief investment officer for core investments at AXA Investment Managers, wrote in a note. “Macro and fundamentals have weakened recently so let’s see whether liquidity is enough to sustain market levels.”

Read: Stock Traders Rethink Their Own Moves at Fastest Rate in Year

The 10-year U.S. breakeven rate — a proxy for where investors see annual inflation over the next decade — has climbed to the highest since June. Prolonged supply chain disruptions and jumping raw-material costs are feeding into worries about rising costs.

Crude oil extended its rally from a seven-year high. Elsewhere, Bitcoin held a climb past the $51,000 mark.

For more market analysis, read our MLIV blog.

Here are some events to watch this week:

  • Rate decision in New Zealand on Wednesday

  • Reserve Bank of India monetary policy decision on Friday

  • The U.S. Labor Department releases unemployment and job creation data Friday

Some of the main moves in markets:

Stocks

  • S&P 500 futures rose 0.1% as of 7:47 a.m. in Tokyo. The S&P 500 rose 1.1%

  • Nasdaq 100 futures added 0.1%. The Nasdaq 100 rose 1.4%

  • Nikkei 225 futures rose 1.7%

  • Australia’s S&P/ASX 200 Index futures rose 0.5%

  • Hang Seng Index futures gained 0.9%

Currencies

  • The Japanese yen traded at 111.48 per dollar

  • The offshore yuan was at 6.4497 per dollar

  • The Bloomberg Dollar Spot Index was steady

  • The euro was at $1.16

Bonds

Commodities

  • West Texas Intermediate crude rose 0.2% to $79.11 a barrel

  • Gold was at $1,760.19 an ounce

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