Asian stock markets clash amid rising oil prices and US Fed concerns
Indian stocks fell sharply while Japanese shares rose on AI optimism; Chinese investors face sideways trading due to federal policy worries.
The Indian stock market tumbled for a third consecutive day as soaring oil prices and regional tensions dragged Sensex and Nifty down. The benchmark indices closed at 74,969 points and 23,500 points respectively, wiping approximately 2 lakh crore from total market capitalization. Major IT firms including Infosys, HCLTech, Tech Mahindra, and TCS dropped 3 percent each, while Reliance Industries fell 1 percent. Broad sectors like Nifty Midcap and Smallcap also declined by up to 0.4 percent.
Conversely, Japan's Nikkei 225 advanced 0.43 percent to 65,549.88 points, driven by renewed enthusiasm for artificial intelligence and semiconductor stocks. Investor confidence in manufacturing remained strong following the highest level since December 2021, supported by demand in data centers. The Philadelphia Semiconductor Index rose 1.3 percent, aiding Japanese technology shares.
Chinese stocks are expected to trade sideways through September according to China Asset Management, which oversees $328 billion in assets. Although profit growth was double-digit in the first half of the year, fears of US Federal Reserve monetary tightening and elevated oil prices may cap gains. A surge in initial public offerings is anticipated to squeeze market liquidity.
