Asian Shares Waver as Oil Prices and Yields Rise Ahead of Key Central Bank Meetings

Asian shares wavered on September 15 as oil prices and bond yields rose ahead of key central bank meetings in the US and Japan. The rise in oil prices was attributed to ongoing Middle East tensions, with Yemen's Iran-aligned Houthis launching a new attack on Saudi Arabia, which could disrupt up to 4% of global oil supply.

The Brent crude price climbed 1.21% to $106.96 per barrel, while the US crude rose 1.27% to $102.68 per barrel. Mitsubishi UFJ Bank analyst Yokoo Akihiko noted that markets are likely to remain focused on the risk of higher oil prices adding to inflationary pressures and pushing interest rates higher.

The US Federal Reserve is set to begin its two-day meeting, with markets pricing in a 90% chance of a rate hike. Morgan Stanley analysts expect a 25-basis-point hike on September 16 and December. They also pointed out that the pace of disinflation has been slower and less convincing than the Fed likely requires.