Asian Markets Today: Asian markets fell sharply in early trade on Friday, with Japanese and South Korean equities leading the declines, as Brent crude hovered around $108 a barrel and investors worried about the inflationary impact of elevated oil prices.
The Nikkei dropped 3.05%, while the Kospi declined 2.35%, following a fourth straight session of losses on Wall Street.
Asian Markets Today
Asian equities opened lower on Friday, tracking the overnight decline in US stocks as oil prices remained elevated amid the prolonged war in the Middle East. Last checked:
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- Nikkei: Down 3.05%
- Kospi: Down 2.35%
- ASX 200: Down 1.07%
- NZX 50: Down 0.36%
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Oil Prices Keep Markets On Edge
Brent crude was last trading 0.54% lower at $108.35 a barrel, after surging 5.9% on Thursday to settle at $107.63. West Texas Intermediate crude jumped 6.7% to close at $102.48.
Both benchmarks recorded their highest closes since May 19.
Since the Iran war began at the end of February, WTI crude has surged 52.9% and is up 78.5% so far this year.
The sharp rise in oil prices has raised concerns that a prolonged war in the Middle East could keep inflation elevated and complicate the outlook for interest rates.
ALSO READ: Brent Spikes To $107 After Saudi Arabia Flags Lowest OPEC Oil Output Since 1990
Wall Street Falls For Fourth Straight Session
US stocks fell for a fourth consecutive session on Thursday as investors assessed the impact of higher oil prices and fresh inflation data.
The Dow Jones Industrial Average declined 316.56 points, or 0.6%, to 52,064.10. The S&P 500 fell 0.58% to 7,591.70, while the Nasdaq Composite slipped 0.65% to 26,081.72.
The jump in crude prices also pushed the 10-year US Treasury yield above 4.95%, its highest level since October 2023.
US Inflation Data In Focus
Investors also weighed August's producer price index, which rose 0.4% month-on-month and increased 5.4% annually.
All eyes are now on the US consumer price index reading for August, due Friday. Economists polled by Dow Jones expect consumer prices to rise 0.4% month-on-month, with annual inflation at 3.4%.
The CPI data will be a key input for the Federal Reserve's Sept. 16 interest-rate decision. Fed funds futures trading suggests roughly a 71% likelihood of a rate hike, according to the CME Group's FedWatch tool.
Indian Equities Snap Three-Day Losing Streak
Indian equities bucked the broader global weakness on Thursday, with benchmark indices ending higher and snapping a three-day losing streak.
The BSE Sensex ended at 74,902.59, up 138.36 points, or 0.19%. The NSE Nifty50 settled at 23,477.80, gaining 46.30 points, or 0.20%.
With Brent crude now around $108 a barrel, investors will closely track oil prices, US Treasury yields and the upcoming US inflation data for cues on the next move in global equities.
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