Asian markets faced a challenging start on Thursday, October 8, as rising oil prices and persistent inflation concerns weighed heavily on investor sentiment. The MSCI's Asia Pacific index dropped by 0.3%, with Japan and South Korea leading the declines. Japan's Nikkei 225 fell by 1.12%, while the broader Topix lost 1.42%. South Korea's Kospi declined by 0.56%, and Hang Seng futures indicated a 0.6% lower open in Hong Kong.
Wall Street's overnight performance set a negative tone, with the S&P 500 and Nasdaq 100 each slipping by 0.2%. The Philadelphia Semiconductor Index saw a sharper decline of 1.2%, reflecting broader tech selloff pressures. In India, the GIFT Nifty suggested a negative market opening, potentially turning the 50-stock index red for the week.
Rising oil prices added to inflationary pressures, complicating the investment landscape as the US Federal Reserve tightens monetary policy. The Fed recently raised interest rates for the first time since 2023, with all 19 officials supporting a target range of 3.75%, 4%. Policymakers noted that financial conditions still supported growth despite rising Treasury yields.
The Japanese yen remained steady near 158 per dollar, gaining slightly to 157.92. Meanwhile, oil prices climbed on geopolitical risks and supply disruptions. Brent crude rose by 1% to around $101.20 a barrel, while West Texas Intermediate increased by 0.9% to $89.09 a barrel.