Most markets drop as oil extends gains ahead of expected US rate hike
The surge in energy costs, with US diesel topping US$6 a gallon, has ramped up pressure on central banks to temper rising inflation.
Asian stock markets experienced a second day of decline on Tuesday due to rising oil prices and expectations of a Federal Reserve interest rate hike. Tech firms recovered slightly following Monday's losses, which were triggered by concerns over the rapid growth of artificial intelligence. The crisis in the Middle East, with Yemen's Houthis gaining control of a key shipping route, contributed to crude prices surpassing $100 a barrel, heightening global inflation concerns.
The surge in energy costs, with US diesel reaching over $6 a gallon, increased pressure on central banks to curb inflation. The 10-year US Treasury yield remained below five percent, below the level it reached earlier in the week. Central bank activity, particularly from the European Central Bank and the Federal Reserve, was closely watched.
Tech firms in South Korea and Japan saw a modest rebound after Monday's sell-off, buoyed by support from other industry leaders such as Elon Musk and Sam Altman. However, the semiconductor index tumbled 5.9%, its largest drop in over two months, indicating caution among investors about the pace of AI development.
Written by urgent.news from Free Malaysia Today's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
