Asian Shares Retreat After Oil Price Spike

(RTTNews) - Asian stocks ended mostly lower on Thursday as technology stocks retreated on concerns over a surge in AI-related corporate debt.

Concerns over rising bond yields and the outlook for monetary policy also weighed on markets as oil prices remained elevated in the wake of supply disruptions linked to the Iran conflict and attacks by Yemen's Iran-backed Houthis on Saudi Arabia.

Gold edged up 0.3 percent to $4,124 an ounce as the dollar pulled back from an 18-month high in subdued trading.

Brent crude prices jumped nearly 4 percent toward $104 a barrel, reversing losses from the previous session after reports suggested that the White House asked Pentagon to develop options to strike Iran before the midterm elections, but no final decision has been made.

On Wednesday, oil prices rose on fresh concerns about Middle East supplies, before falling after the International Energy Agency agreed to speed up a planned release of oil stocks and prioritize diesel in a bid to curb record-high fuel prices.

Seven commodity vessels passed through the Strait of Hormuz on Tuesday, the lowest figures since July 23 after attacks in the key waterway reached their highest last week since the start of the U.S-Israeli war with Iran, according to data from analytics firm Kpler.

The U.S. State Department urged citizens to exercise heightened vigilance after Houthi strikes on two Saudi airports killed three people and injured 36.

Mainland Chinese markets ended notably lower as trading resumed after the National Day Golden Week closure. The benchmark Shanghai Composite index fell 0.79 percent to 3,811.90 amid renewed U.S.-China tensions on trade and technology restrictions.

Analysts said a U.S. plan to prevent Chinese laboratories from testing electronics devises for use in the American market could disrupt a key link in the global electronics supply chain.

Hong Kong's Hang Seng index slumped 1.43 percent to 23,785.79. Tencent Holdings shares fell 2.2 percent after Bloomberg reported that the technology giant is considering raising up to $5 billion via an offshore bond sale.

Japanese markets ended lower for a second consecutive session as oil prices surged amid renewed Middle East supply concerns. The Nikkei average fell 1.42 percent to 69,042.11 while the broader Topix index settled 1.51 percent lower at 4,091.46.

Banking and semiconductor stocks succumbed to heavy selling pressure, with Mitsubishi UFJ Financial dropping 3.3 percent and SoftBank Group plummeting 4.3 percent.

Seoul stocks fell for a third consecutive session on inflation and interest-rate worries. The Kospi index tumbled 2.62 percent to 6,625.93.

Shares of Samsung Electronics fell 2.4 percent despite the company posting record profit as a result of surging memory chip prices and relentless spending on artificial-intelligence infrastructure.

Australian markets ended lower, with banks and technology stocks coming under selling pressure on bond market woes. The benchmark S&P/ASX 200 fell 0.77 percent to 8,660.90 while the broader All Ordinaries index closed 0.80 percent lower at 8,823.20.

Across the Tasman, New Zealand's benchmark S&P/NZX-50 index finished marginally higher at 13,691.85, halting declines from the previous session.

U.S. stocks climbed well off their lows but still ended firmly in the red overnight as oil prices fluctuated and yields on government bonds climbed to 24-year highs before pulling back in the wake of a strong $39 billion auction of 10-year Treasury notes.

The tech-heavy Nasdaq Composite and the S&P 500 both slid by 0.2 percent while the narrower Dow gave up 0.7 percent as minutes of the Fed's Sept. 15-16 meeting signaled another interest rate hike would likely be appropriate before year-end, depending on incoming information, the economic outlook and the balance of risks.

In economic releases, new data highlighted the impact of rising borrowing costs in the housing sector.