Oil Price Drop Eases Inflation Concerns, Boosting Asian Stocks

Hong Kong stocks rose in line with Wall Street as oil prices fell, easing inflation concerns. The drop in oil prices helped to calm traders worried about policymakers not acting quickly enough to address a spike in inflation that could hurt the global economy.

The Federal Reserve's interest rate hike this week provided some relief to traders concerned about rising inflation. Saudi Arabia is also working to restore its East-West pipeline, which was shut after being targeted by Yemen's Iran-backed Houthis, and has already restored half of its crude shipments disrupted by the stoppage.

Crude prices had surged 20% in September, but have now fallen around 5% from recent highs. West Texas Intermediate dipped below $100 per barrel for the first time since Friday. The surge in oil prices was one of the main drivers of rising inflation since the US and Israel began their war on Iran at the end of February.

The latest fall-off provided some much-needed support to stocks. Seoul, Tokyo, Hong Kong, Shanghai, Sydney, and Taipei all advanced, although there were small losses in Singapore, Wellington, and Manila.