Asian Stocks Rise as Oil Prices Decline Amid Inflation Concerns

Asian stock markets finished higher on Friday, boosted by declining oil prices. However, European indices slumped after rising bond yields and concerns over inflation. The S&P 500 fell 0.3% in afternoon trading, while the Dow Jones Industrial Average dropped 246 points, or 0.5%. The Nasdaq composite declined 0.2%.

The majority of stocks on Wall Street decreased as a result of rising pressure from the bond market and higher yields. The yield on the 10-year Treasury increased to 5.00% from 4.94% late Thursday, its highest level since 2023. Higher yields can slow economic growth by making borrowing more expensive for individuals, businesses, and the government.

The price of Brent crude oil dropped below $110 per barrel early this week but rebounded slightly to $104.58, down 0.2% from the previous day. Rising oil prices have contributed to high inflation, which remains above 3%. Inflation has worsened due to higher oil prices caused by the war with Iran.

Nucor, a steel maker, reported that it expects an increase in profit from its steel mills business in the third quarter but gave a forecast for overall profit that fell short of analysts' expectations. Berkshire Hathaway slipped 0.3% after Warren Buffett announced he's giving up his role as chairman of the company.