Asian Stocks Fall as Oil Tops $100, Yields Rise

Asian stock markets declined broadly on Thursday, led by losses in technology shares as investors weighed oil prices above $100 a barrel, elevated U.S. Treasury yields and upcoming U.S. inflation data.

The regional weakness followed losses on Wall Street, where the Nasdaq Composite dropped 0.6% overnight. U.S. stock futures were mixed during Asian trading, with Nasdaq 100 futures edging lower.

Japan’s Nikkei 225 fell 0.8%, while the TOPIX declined 0.4%. A stronger yen also pressured Japanese equities as traders increased expectations for a Bank of Japan interest rate hike this month.

South Korea’s KOSPI dropped 1.1%, with Samsung Electronics losing 1.4% and SK Hynix falling 0.6%. Hong Kong stocks suffered steeper losses, with the Hang Seng Index down 1.6% and the Hang Seng TECH Index sliding more than 2%.

Brent crude traded near $101.40 a barrel after moving above the key $100 threshold for the first time since July. Oil prices have surged following an escalation in attacks on shipping involving Iran and the United States, intensifying concerns about potential Middle East energy supply disruptions.

Meanwhile, the benchmark 10-year U.S. Treasury yield remained near 4.84% after reaching its highest level since 2023. A $6 billion Treasury buyback of longer-dated debt disappointed some investors who anticipated a larger operation. Higher bond yields have particularly weighed on technology and growth stocks because their valuations are sensitive to borrowing costs.

Elsewhere, China’s Shanghai Composite slipped 0.2%, while the CSI 300 fell 0.3%. Australia’s S&P/ASX 200 lost 1.6% and Singapore’s Straits Times Index declined 0.6%. Futures linked to India’s Nifty 50 gained 0.3%.

Investors are now turning their attention to U.S. inflation figures. Producer price data is due Thursday, followed by consumer inflation data on Friday. Fed funds futures indicate roughly a 60% probability of an interest rate hike at the Federal Reserve’s Sept. 15-16 meeting.

Persistent oil price gains could further complicate the Fed’s outlook by increasing inflation pressures while higher energy and borrowing costs weigh on economic growth.