Brent crude hits $108.59 as Asian stocks fall
Brent crude rose to $108.59 per barrel Friday. Asian equity markets declined across the region.
Brent crude traded at $108.59 per barrel on Friday. This marked a 0.9% increase from the previous session. The price is the highest level seen since May. U.S. benchmark crude also rose by 0.7% to $103.22 per barrel. These gains follow intensified tensions between the United States and Iran.
Asian stock indices fell in line with Wall Street losses. The S&P 500 dropped 0.6% on Thursday. This was its fourth consecutive trading day of losses. The Dow Jones Industrial Average fell by the same margin. The Nasdaq composite index declined by 0.7%.
Asian equity markets post losses
Japan’s Nikkei 225 index dropped 2.8% to close at 63,442.30. South Korea’s Kospi index lost 2.3% to finish at 6,872.39. China’s Shanghai Composite index decreased by 1.8% to 3,862.73. Australia’s S&P/ASX 200 index fell 1.2% to 8,712.20. India’s Sensex index declined by 1.0%.
Sector performance varied significantly within these indices. SoftBank Group shares fell 4.1% in Tokyo. Samsung Electronics stock slid 3.9% in Seoul. SK Hynix shares dropped 3.6% in the same market. In Shanghai, Enflame shares surged approximately 180% on their trading debut.
Energy flow remains constrained
Oil volumes moving through the Strait of Hormuz are low. GN auto markets/indices: stock index analysts note these levels are well below pre-war figures. The strait remains a critical choke point for global energy transport. Analysts describe the current supply situation as fragile. Reduced flow supports higher price discovery in crude markets.
Inflation data and bond yields
U.S. economic data continues to influence market sentiment. The August producer price index rose 5.4% year-over-year. This accelerated from July’s 4.8% increase. Investors await the August consumer price index release. This data arrives before the Federal Reserve’s next meeting.
The 10-year U.S. Treasury yield rose to 4.96%. It had stood at 4.83% on Wednesday. Higher energy costs contribute to inflationary pressures. Rising government debt also impacts bond market volatility. The U.S. dollar fell to 154.35 yen from 154.42.
