Asian stocks fall as US oil climbs past $97 a barrel ahead of inflation data
Equity futures across Asia decline following Wall Street losses and surging energy prices before the Federal Reserve releases key inflation figures on Friday.
Asian stock markets are set to drop Thursday as investors track losses in New York. Equity-index futures for Japan, South Korea, and Australia moved lower after the S&P 500 Index declined 0.5%. Major technology companies including Nvidia Corp., Amazon.com Inc., and Alphabet Inc. contributed to the sell-off in US markets, where the Nasdaq 100 Index fell 0.3%. Contracts for US stocks remained flat during early Asian trading.
The global sell-off coincides with a rally in crude oil that extended its gains over eight straight sessions. US oil traded above $97 a barrel Thursday morning after Brent settled at levels exceeding $101. Escalating Middle East tensions drove these concerns regarding energy supplies, leading to fears that inflation will remain sticky.
Bond markets also struggled, with the 10-year Treasury yield hitting its highest point since 2023. The government planned to purchase up to $6 billion in longer-dated debt, a figure lower than what some investors anticipated, which caused yields to climb. Analysts note that rising bond prices create sensitivity among stocks and bonds just before Friday's US inflation report. A strong reading may push the Federal Reserve toward further rate increases, while softer data could suggest policymakers will pause tightening measures.
