Oil Prices Fuel Asian Stock Declines Amid Inflation Concerns
Asian stock markets are poised to decline on Tuesday as oil prices continue their upward trend and concerns about inflation linger. Equity index futures indicate that stocks in Sydney, Tokyo, and Hong Kong will fall, while South Korean markets reopen after a holiday.
The S&P 500 and Nasdaq 100 both fell by around 0.5% and 0.2%, respectively, on Monday, with chipmakers being an exception as they rose due to the strong sales growth of Anthropic's Claude chatbot, which posted preliminary revenue of over $11.5 billion.
The West Texas Intermediate crude oil price climbed 1% to $85.30 a barrel, reviving concerns about inflation and potential interest rate hikes by the Federal Reserve before the end of the year. The dollar gauge fell to its weakest level since May, while 30-year Treasury yields rose to their highest level since 2007.
Investors are now focused on oil prices and bond yields for signs of a lasting inflation shock that may drive bets on Fed tightening and pressure richly valued equities. Matt Maley, chief market strategist at Miller Tabak + Co., noted the unsettling situation in the Middle East and elevated US 10-year note yields.