South Korea, Japan stocks decline as Asian shares drop on oil, inflation concern
The MSCI Asia Pacific Index falls 1.4% after the S&P 500 Index slips 0.5%
Asian shares and bonds fell on September 11 as a rise in oil prices triggered a sell-off in US markets, with the latest inflation data supporting predictions of an imminent interest rate hike by the US Federal Reserve. The MSCI Asia Pacific Index declined 1.4%, with South Korea and Japan leading the drop. S&P 500 futures remained stable at 9.04 am Tokyo time, while Hang Seng futures fell 0.8%, Japan’s Topix decreased 1.8%, and Australia’s S&P/ASX 200 dipped 1%.
Brent crude rose 0.4% after touching near $110 a barrel in US trading, pushing up Treasury yields to multi-year highs. The Treasury bought back fewer securities than expected, exacerbating bond sell-offs. Inflation concerns intensified after a hotter-than-anticipated US producer price report, prompting traders to increase bets on a Fed rate hike next week.
Despite setbacks, some sectors showed resilience, with Oracle shares rising about 6% in extended trading following better-than-expected growth in its cloud computing business. The upcoming US consumer price index report will be crucial in determining risk sentiment, as investors assess whether rising energy costs are impacting broader price pressures.
Written by urgent.news from The Business Times - Companies & Markets's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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- Asian Stocks decline as surging oil prices stoke inflation fears and lift Fed hike bets fxstreet.com
- Asian shares slump as surging oil prices inflame inflation risks freemalaysiatoday.com
- Japan core inflation seen steady at 1.8% in August: Reuters poll channelnewsasia.com
