GLOBAL MARKETS-Asian stocks fall to near 1-year low as oil prices stoke inflation worries

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* Asian stock markets hit several-month low

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*Benchmark index fell for the third consecutive session

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* Rising energy prices shook the markets

SINGAPORE, Oct 5 (Businesshala) – Asian stocks took heavy losses early on Tuesday after a broad sell-off on Wall Street, as markets worried about the impact of multi-year high oil prices at a time when supply chain disruptions were first. Was putting pressure on it. on economic activity.

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MSCI’s broadest index of Asia-Pacific shares outside Japan fell as much as 1.3%, falling for the third consecutive session. Shares in Japan were down 2.8%, South Korea by 2.5% and Australia by 1%.

“Investors are clearly concerned about inflation due to supply chain disruptions and rising energy prices,” said Vasu Menon, executive director of investment strategy at OCBC Bank.

The fall in the markets took MSCI’s main benchmark to 619.87, the lowest since November 2020. It has fallen more than 5% this year, with Hong Kong and Japanese markets taking major losses.

“We’ve seen tech stocks outperform value stocks, so if inflation continues to be a concern, tech stocks get hit,” Menon said.

Oil prices rose to a three-year peak on Monday after OPEC+ confirmed it would stick to its current production policy here on increased demand for petroleum products, despite pressure from some countries to give a big boost to production.

US oil was steady at $77.60 a barrel a day after hitting its highest level since 2014. Brent crude was at $81.30 after hitting a three-year high.

Market focus in Asia will be on whether property developer China Evergrande offers any respite to investors looking for signs of property settlement here. The company’s shares were halted for trading on Monday.

The Dow Jones Industrial Average fell 0.94% to 34,002.92, the S&P 500 fell 1.30% to 4,300.46 and the Nasdaq Composite fell 2.14% to 14,255.49 as investors dumped Big Tech shares as Treasury yields rose.

US Treasury yields rose on investors’ caution about the need to raise the government’s debt limit as the United States faces the risk of a historic default in two weeks. In late trading on Wall Street, the US Senate prepares to vote on a bill passed in the House of Representatives that would raise the US debt limit through December 2022, ending a deadlock in Congress that has puzzled investors. .

The US dollar was trading near a one-year high versus key peers against key US payrolls data at the end of the week, which could give clues on the timing of the Federal Reserve stimulus and the timing of the start of interest rate hikes.

The dollar index, which tracks the greenback versus a basket of six currencies, rose 0.09% to 93.928.

The euro fell 0.13% to $1.1605, while the yen traded up 0.12% to $111.

Gold prices closed in a narrow range on Monday after hitting their highest level since September 23 and were trading at $1,763 an ounce.

Reporting by Anshuman Daga; Editing by Himani Sarkar


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