Asian Markets Tread Water Amid Oil Price Volatility

Asian markets traded mixed in early Thursday trading as investors grappled with fluctuations in oil prices and the U.S. bond market.

The benchmark Nikkei 225 rose 1.3% to 65,883.41, driven by gains in chipmakers following recent interest in artificial intelligence.

In contrast, Hong Kong's Hang Seng lost 0.5% to 24,715.95 and the Shanghai Composite dipped 0.8% to 3,902.33.

The price of Brent crude, the international standard, fell 0.83% to $102.22 a barrel, while U.S. crude declined 0.82% to $91.40 a barrel.

Worries about inflation rose after a preliminary report suggested growth in U.S. business activity surged to its strongest level in over five years, prompting the Federal Reserve to consider further interest rate hikes.