From Malay Mail · · 1m
Asian stocks rise as Wall Street gains and falling oil ease inflation worries
Oil prices drop, Asian stocks climb as inflation fears ease
In brief
Oil prices drop, Asian stocks climb as inflation fears ease Falling oil prices and Fed rate hikes reduced inflation concerns, boosting Asian markets Originally reported by Malay Mail.
Oil prices fall
Crude prices dropped 5% from recent highs as Saudi Arabia restored oil shipments after pipeline disruptions
“Crude prices, which had soared around a fifth in September, have fallen around five per cent from recent highs”
Asian stocks climb
Tokyo, Hong Kong, and Shanghai indices rose 0.7-0.9% as inflation concerns eased
“Seoul, Tokyo, Hong Kong, Shanghai, Sydney, and Taipei all advanced though there were small losses in Singapore, Wellington, and Manila”
Fed rate hike impact
The Federal Reserve's recent borrowing cost increase calmed traders worried about inflation spikes
“The Federal Reserve’s hike in borrowing costs this week provided some relief to traders concerned that policymakers were not moving quick enough to address a spike in inflation”
Bank of Japan decision
Investors expect a 25-basis-point interest rate hike from the Bank of Japan ahead of the announcement
“On currency markets the yen slipped against the dollar ahead of the BoJ announcement, which is widely expected to be a 25-basis-point hike in interest rates”
Oil pipeline disruptions
Saudi Arabia's East-West pipeline was disrupted by Yemen's Iran-backed Houthi rebels
“The conduit, even more important since the effective closure of the Strait of Hormuz by Iran, was shut last week after being targeted by Yemen’s Iran-backed Houthis”
Oil price impact
West Texas Intermediate crude dropped below $100 for the first time since Friday
“West Texas Intermediate dipping below US$100 (RM409) for the first time since Friday”
Market reactions
The 10-year US Treasury bond yield fell below 5% as inflation worries eased
“The latest moves in oil and the Fed’s action reassured investors and kept the 10-year US Treasury bond yield back below five per cent”
At a glance
Falling oil prices and Fed rate hikes reduced inflation concerns, boosting Asian markets
