Asian shares start the week cautious as oil prices ease

Asian share markets began the week on a cautious note as oil prices softened from six-month highs. Japan's Nikkei index fell 0.8%, having dropped 4.0% last week, while South Korean stocks declined 0.4%, following a 19% decline this month. Brent oil prices slipped 1.0% to $115.48 after Qatarian mediators were in Tehran, attempting to ease regional tensions alongside the US. US crude futures tumbled 1.1% to $102.08 a barrel.

MSCI's Asia-Pacific index, excluding Japan, slipped 0.1%. Central banks are concerned about the inflationary impact of oil and are expected to hike interest rates soon. The G3 central banks (US, UK, and Sweden) may hike rates, while Canada and New Zealand are set to begin their tightening cycles. New Zealand's central bank is expected to raise rates on Wednesday.

The US Federal Reserve is expected to maintain rates at its October meeting but may hike rates in December. Goldman Sachs analysts predict a 3.1% core inflation rate in September, with a 3.2% annualized GDP growth rate, largely due to increased spending on data centers. Wall Street's S&P 500 and Nasdaq futures edged up 0.2%. Earnings from hyperscalers, such as Alphabet, Microsoft, and Amazon, are crucial, as are reports from Intel and Sandisk.