Oil Surge Fuels Inflation Fears as Asian Stocks Fall Except in Seoul

Asian stocks largely fell on September 8 as escalating tensions in West Asia drove oil prices higher, fueling inflation concerns and caution among investors about further monetary tightening.

The MSCI Asia Pacific Index dropped by 0.2%, with Japan's Nikkei edging down just 0.018% and the Topix falling 0.46%. In contrast, South Korea's Kospi bucked the trend, rising 1.13%

Investors are closely watching inflation risks as energy costs rise, with markets now weighing whether the US Federal Reserve will raise interest rates or maintain them when Friday's inflation data is released.

The Japanese yen strengthened to its highest level since February, gaining 0.3% to trade at 153.94 per dollar on Tuesday, building on a 1.2% surge in the previous session.