Asian Shares Slide Amid Global Market Volatility
Asian shares declined on Friday as they tracked Wall Street losses from Thursday, when the S&P 500 dropped 0.6%. The Nikkei 225 fell by 2.8% to 63,442.30, while South Korea's Kospi lost 2.3% to 6,872.39. Oil prices continued to rise, with Brent crude trading at its highest level since May at $108.59 per barrel.
The U.S. futures market edged higher, but investors remain cautious ahead of the release of consumer price index data for August and next week's Federal Reserve meeting. The producer price index report for August showed a 5.4% year-on-year increase, accelerating from July's 4.8%. Bond markets have been volatile, with U.S. Treasury yields above pre-war levels.
Warren Patterson and Ewa Manthey of ING commodities strategists noted that oil flowing through the Strait of Hormuz remained 'well below pre-war levels,' underscoring how fragile the situation has become.