Oil Prices Soar Above $99 as Asian Stocks Trade Cautiously
Asian stocks are trading cautiously as investors await updates on interest rates and monitor rising oil prices. The benchmark Nikkei 225 in Japan was nearly unchanged at 65,249.95, while South Korea's Kospi gained 1.2% to 7,041.10.
In Hong Kong, the Hang Seng dipped 0.1% to 25,287.99. The Shanghai Composite added 0.2% to 3,949.89. Australia's S&P/ASX 200 slipped 0.2% to 8,903.20.
Taiwan's Taiex edged 0.2% higher and the Sensex in Mumbai shed 0.7%. Brent crude, the international standard, surged 1.4% to $99.30 a barrel, with U.S. crude rising 1.2% to $94.17.
The increase in oil prices has worsened worries over high inflation, which is expected to remain above the Federal Reserve's target of 2%. A closely watched report on U.S. inflation comes out on Friday, showing how much more people paid for groceries and other living costs in August compared to a year earlier.
Economists predict inflation eased slightly to 3.3% from July's 3.4%, which would be above the Fed's target but better than expected. The yield on the 10-year Treasury rose to 4.79% from 4.78%, near its highest level since autumn 2023.
Japan's central bank will meet next week to decide on its benchmark rate, with market watchers expecting an increase. Meanwhile, U.S. Treasury Secretary Scott Bessent has been critical of Japanese government policies that favor a weak yen, stating traders could 'bet against' him following the joint U.S.-Japan intervention in July.