Asian equity markets posted broad declines on Friday, tracking the losses seen on Wall Street earlier in the day. The downturn came amid rising oil prices, with Brent crude trading at $108.59 a barrel – its highest level since May – and U.S. crude up 0.7% at $103.22.
Market performance across the region
Japan’s Nikkei 225 slipped 2.8% to 63,442.30, while South Korea’s Kospi fell 2.3% to 6,872.39. In Hong Kong, the Hang Seng index dipped 0.8% to 24,753.54, and Shanghai’s Composite dropped 1.8% to 3,862.73. Notable movers included SoftBank Group, which fell 4.1% after a broader tech sell‑off, and Samsung Electronics, down 3.9% in South Korea. Memory‑chip maker SK Hynix lost 3.6%.
Australia’s S&P/ASX 200 slipped 1.2% to 8,712.20, Taiwan’s Taiex fell 1.7%, and India’s Sensex declined 1%.
Oil prices rise on geopolitical tension
Brent crude rose 0.9% to $108.59 per barrel, a level not seen since May, while U.S. benchmark crude climbed 0.7% to $103.22. The price surge reflects heightened tension between the United States and Iran, which analysts say has made oil flow through the Strait of Hormuz “well below pre‑war levels.” ING commodities strategists Warren Patterson and Ewa Manthey noted the fragility of the situation in a Friday commentary.
U.S. economic backdrop
Wall Street’s benchmark S&P 500 fell 0.6% for a fourth straight session on Thursday, with the Dow Jones Industrial Average and the Nasdaq composite each slipping 0.6% and 0.7% respectively. Investors are watching the upcoming release of August’s consumer price index, scheduled for Friday, as a key gauge ahead of the Federal Reserve’s policy meeting next week.
In addition, the U.S. producer price index for August rose 5.4% year‑over‑year, accelerating from a 4.8% increase in July. Treasury yields have remained elevated, with the 10‑year note climbing to 4.96% early Friday, up from 4.83% on Wednesday. The higher yields reflect ongoing inflation pressures, rising energy costs, and growing federal debt.
Currency movements
The U.S. dollar slipped slightly against the Japanese yen, trading at 154.35 yen versus 154.42 the day before. The euro was quoted at $1.1605, marginally down from $1.1612.
Overall, the combination of rising oil prices, geopolitical uncertainty, and upcoming U.S. inflation data kept investors cautious, prompting declines across major Asian equity indexes while energy markets continued to climb.
Original reporting: Alexandria, VA News – WTOP News — read the source article.
