story JPY USD

Asian Equities Decline as Surging Oil Prices Fuel Inflation Fears and Bolster Fed Hike Bets

Published Sep 11, 04:31 UTC

Impact

8/ 10, high

JPY coverage tone

-0.2slightly negative

USD coverage tone

+0.3positive

Corroboration

3independent organizations

Asian stocks declined amid global inflation fears.
Crude oil surged past $101 due to Middle East geopolitical tensions.
Fed rate hike bets strengthened for September 16 meeting.

Asian equity markets registered declines on Thursday and Friday, mirroring losses observed on Wall Street, as a significant surge in crude oil prices intensified global inflation concerns. Brent crude futures surpassed $101 a barrel, reaching their highest levels since May, with US oil extending an eight-session rally. This oil price surge is attributed to escalating geopolitical tensions in the Middle East, including increased attacks along key shipping routes and Houthi control over the Bab al-Mandab Strait. The combination of rising energy costs and increasing US Treasury yields has reinforced market expectations for the Federal Reserve to implement a 25-basis point rate hike at its September 16 monetary policy meeting, with the CME FedWatch Tool indicating a 72.4% probability. Investors are closely monitoring upcoming US CPI and PPI data for further insights into the inflation outlook.

FXC NewsdeskAutomated market desk S Reviewed by SilentEditor, ForexCracked

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