Asian Shares Slide Amid Inflation Concerns

(RTTNews) - Asian stocks ended lower on Thursday as rising oil prices and bond yields fueled concerns about inflation and the Federal Reserve's rate path.

The U.S. dollar index was subdued in Asian trade while gold held firm above $4,400 an ounce ahead of key U.S. PPI and CPI data due this week, which could influence the Federal Reserve's rate decision on September 16.

Brent crude futures were little changed above $101 a barrel, hovering at their highest level since May as escalating fighting between Saudi Arabia and the Houthis in Yemen fueled concerns about further disruptions to energy supplies.

U.S. President Donald Trump said oil prices that spiked because of the Iran war are unlikely to come down until after the U.S. midterm elections.

China's Shanghai Composite index dropped 0.43 percent to 3,934.40 on oil-driven inflation fears. Hong Kong's Hang Seng index fell 1.27 percent to 24,954.47, with internet and technology stocks leading losses.

Japanese markets eked out modest gains as technology stocks recovered from early losses. The Nikkei average edged up 0.20 percent to 65,270.95 after two straight sessions of losses.

The broader Topix index settled 0.20 percent higher at 4,054.58, with banks and some AI-related stocks attracting buying.

Seoul stocks ended slightly lower on inflation concerns. The Kospi index cut early losses to close 0.25 percent lower at 7,033.92.

Australian markets fell sharply, dragged down by banks and miners. The benchmark S&P/ASX 200 fell 1.03 percent to 8,819.40 in its worst session in more than three months due to soaring oil prices and the fear of higher inflation. The broader All Ordinaries index ended down 1.04 percent at 9,008.30.

Across the Tasman, New Zealand's benchmark S&P/NZX-50 index dropped 0.78 percent to 13,711.01, touching its lowest level since July 31.

U.S. stocks ended lower for a third consecutive session overnight as surging oil prices and higher bond yields clouded the outlook for inflation and interest rates.

Crude oil futures reached their highest level since May 22 after the U.S. and Iran attacked tankers in the Gulf region and Yemen's Houthis hit oil facilities in Saudi Arabia.

President Donald Trump said he doesn't think the Iran war will end until after November's midterm elections, adding that the U.S. is not looking to restart negotiations and that Tehran "can't hold out any longer."

Trump also said that recent U.S. strikes in Strait of Hormuz have incapacitated nine Iranian tankers and more attacks could follow.

Meanwhile, the yield on the benchmark 10-year Treasury note surged to 4.857 percent, the highest since November 2023, after the Treasury Department said it would triple the size of its individual long-dated Treasury buyback operations to $6 billion, which investors deemed insufficient.

The Dow dipped 0.8 percent to reach its lowest closing level in over a month while the S&P 500 gave up half a percent and the tech-heavy Nasdaq Composite shed 0.6 percent.