Asian Stocks Plummet as Oil Prices Surge

Asian stocks plummeted on Wednesday as oil prices surged to around $96 a barrel, pushing global bond yields higher and reviving fears of prolonged inflation.

The sharp increase in crude prices has led to concerns that central banks may need to maintain tight monetary policy, putting pressure on rate-sensitive technology and growth stocks across the region. In Japan, the Nikkei index tumbled 3%, while the broader Topix slipped 2.5% due to heavy losses in tech shares.

The Japanese market was also pressured by expectations of a Bank of Japan interest rate hike later this month, following comments from BOJ Governor Kazuo Ueda that the central bank would continue to consider rate increases and assess whether economic and price developments remained consistent with its outlook. The US Treasury Department had earlier called for 'decisive' monetary steps to combat the weak yen.

Australia's second-quarter GDP growth beat forecasts, rising 0.4% from the previous quarter, but this failed to lift the country's S&P/ASX 200 index, which ended 1% lower as investors anticipated another Reserve Bank of Australia rate hike this year.