Asian equity markets slipped Thursday following a pullback on Wall Street, driven largely by oil prices that remain above $100 a barrel. The price of Brent crude jumped 3.4% on Wednesday, breaking the $100 mark for the first time since July, and settled around $101 early Thursday.
Trump’s outlook on oil
President Donald Trump told reporters Wednesday that the current level of oil prices is unlikely to fall until after the U.S. midterm elections. He linked the price pressure to the latest attacks between the United States and Iran, which have choked the flow of oil through the Strait of Hormuz – a vital conduit for roughly one‑fifth of the world’s oil supply.
Market reactions in Asia
In Tokyo, the Nikkei 225 slipped 0.8% to 64,597.46. South Korea’s Kospi fell 0.9% to 6,989.06, while Hong Kong’s Hang Seng dropped 1.4% to 24,932.95. Shanghai’s Composite index gave up 0.3% to 3,939.43. Australia’s S&P/ASX 200 slipped 1.5% to 8,774.50, and Taiwan’s Taiex fell 0.8%.
U.S. market backdrop
On Wall Street, the S&P 500 fell 0.5%, the Dow Jones Industrial Average slid 0.8%, and the Nasdaq composite gave up 0.6%, putting all three indexes on track for a weekly loss. Retail giants such as Amazon (‑1.8%), Starbucks (‑1.9%) and Home Depot (‑1.0%) were among the stocks pulling the market lower. Energy stocks were the sole bright spot, with Exxon Mobil up 2.2% and Chevron gaining 1.9% as higher oil prices boosted their earnings outlook.
Impact on American consumers
Higher oil prices have already pushed gasoline costs in the United States up about 32% from a year ago, reaching $4.22 per gallon. Diesel, a key fuel for shipping and production, hit an all‑time high of $5.94 per gallon on Friday and remains on the rise. Those increases are feeding into broader inflation pressures, which remain above the Federal Reserve’s 2% target and are expected to stay above 3% in upcoming CPI and PPI reports.
Policy moves to curb borrowing costs
The U.S. Treasury Department announced Wednesday that it will buy back up to $6 billion of long‑term debt, a step intended to help contain rising Treasury yields that make borrowing more expensive for businesses and investors. Bond yields had been steady before the announcement but rose shortly afterward.
Other market news
Meta Platforms saw a 6.6% jump after launching a new personal AI assistant, Muse, aimed at adults 18 and older for everyday tasks. Meanwhile, the U.S. dollar slipped to 153.42 Japanese yen, and the euro edged up to $1.1640.
Overall, the combination of geopolitical tension in the Middle East, President Trump’s warning about oil pricing, and the broader inflation environment continues to shape both Asian and U.S. markets.
Original reporting: Alexandria, VA News – WTOP News — read the source article.
