Asian Stocks Slip on Tech, Oil Surge

Asian Stocks Slip on Tech, Oil Surge

Asian equity markets fell broadly on Thursday, with technology shares leading the losses as oil prices surged above $100 a barrel and bond yields rose ahead of key U.S. inflation data. The sell‑off followed a weaker Wall Street session in which the tech‑heavy Nasdaq Composite slipped 0.6% overnight, and U.S. stock futures were mixed, with Nasdaq 100 futures edging lower.

In Japan, the Nikkei 225 declined 0.8% and the broader TOPIX fell 0.4%, while a sharply stronger yen capped any gains and spurred speculation of a Bank of Japan rate hike this month. South Korea’s KOSPI slid 1.1%; heavyweight Samsung Electronics (KS:005930) dropped 1.4% and SK Hynix (KS:000660) fell 0.6%. Hong Kong’s Hang Seng index slipped 1.6%, with the Hang Seng TECH sub‑index declining more than 2%.

Brent crude futures edged up to around $101.4 a barrel, marking the first breach of the psychologically important $100 level since July, after a major escalation in Iran‑U.S. shipping attacks raised fears of further Middle‑East energy‑supply disruptions.

The U.S. 10‑year Treasury yield held near 4.84% after reaching its highest level since 2023 in the prior session. A $6 billion Treasury buyback of longer‑dated debt disappointed investors who had expected a larger operation, helping keep yields elevated. The higher yields added pressure to technology and other growth stocks, whose valuations are particularly sensitive to borrowing costs.

In mainland China, the Shanghai Composite edged down 0.2% and the Shanghai‑Shenzhen CSI 300 fell 0.3%. Australia’s S&P/ASX 200 dropped 1.6% and Singapore’s Straits Times Index slipped 0.6%. Futures tied to India’s Nifty 50 rose modestly 0.3%.

The oil rally complicates central‑bank outlooks by threatening to keep inflation elevated even as higher energy costs pressure economic growth. Fed funds futures were pricing roughly a 60% probability of a rate hike at the Federal Reserve’s September 15‑16 meeting, according to CME FedWatch. Investors are focused on U.S. producer‑price data due Thursday and consumer‑price data due Friday.