Asian stocks retreat as oil rises above $100 and investors reassess global rate risks
Asian equities weakened on Wednesday despite another record-setting session on Wall Street, as rising oil prices and renewed concerns over global bond yields offset optimism about corporate earnings and AI-related growth. The MSCI Asia-Pacific index excluding Japan fell about 0.5%, while Hong Kong and Singapore declined and technology shares in South Korea also came under […]
Asian equities declined on Wednesday, despite Wall Street achieving fresh record highs. Rising oil prices and renewed worries about global bond yields counteracted optimism surrounding corporate earnings and AI-driven growth. The MSCI Asia-Pacific index excluding Japan fell about 0.5%, with Hong Kong, Singapore, and South Korean technology shares experiencing declines.
Brent crude surged to around US$101.58 per barrel, while US crude reached approximately US$90.22. The US 10-year Treasury yield remains near multi-decade highs due to concerns about inflation, fiscal deficits, and the availability of government debt. For emerging Asian markets, this elevated yield can make local assets less appealing and exert downward pressure on currencies.
Thailand is especially vulnerable to the combination of high oil prices and global yields, as it faces increased import and transport costs. The baht opened at roughly THB33.62 per US dollar, stronger than the prior close, but remains sensitive to global risk sentiment. While AI and corporate earnings support equity valuations, energy and financing costs are increasingly offsetting these gains.
For Thailand, this tension is particularly challenging as the nation contends with flood-related disruptions and aims to attract more technology investment.
Written by urgent.news from Thailand Business News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
