MSCI’s broadest index of Asia-Pacific shares outside Japan paused after two straight days of gains. It was last at 690.53, a long way from a record high of 745.89 touched in February.

Japan’s Nikkei rose 0.2% while South Korea’s KOSPI index was up a tad.

Australia’s benchmark index slipped 0.4% as miners were dented by weaker prices for iron ore and coal.

Global shares have surged in recent weeks led by successful rollouts of COVID-19 vaccines around the world, U.S. stimulus packages and higher U.S. inflation expectations.

“However, the back up in treasury yields has begun to exert a valuation test on some parts of the global equity markets with value outperforming growth,” as per analysts.

“Equally, there are fewer stocks offering decent yields and higher capital gains.”

Chinese shares started in the red on Thursday with the blue-chip CSI300 index down 0.2%.

In currencies, the U.S. dollar was on track for a fourth consecutive day of fall against its major counterparts.

Forex investors are keeping an eye on Treasury yields for direction with a potential market panic about accelerating inflation seen as the biggest risk to sentiment.

Major policymakers, including the U.S. Federal Reserve, have repeatedly said there is still plenty of labour market slack to keep inflation in check for several years though there might be temporary spikes which they are willing to overlook.

Against the Japanese yen, the dollar slipped for a fourth day to 108.93. The euro rose to $1.195 and sterling was a shade higher at $1.3790.