Asian stock markets opened broadly lower on Thursday as crude oil remained above $100 a barrel, escalating Middle East tensions intensified concerns over energy supplies and investors prepared for crucial US inflation data that could reshape expectations for global interest rates.
Tokyo retreats as energy concerns dominate
Japan’s Nikkei 225 opened under pressure and extended losses during early trading. The benchmark was down around 0.8 per cent at 64,597, with construction and retail shares among the weaker sectors.
A stronger yen added another challenge for Japanese exporters. Investors are also positioning ahead of next week’s Bank of Japan meeting, where expectations of further monetary tightening have increased.
Hong Kong and mainland China move lower
Hong Kong suffered a sharper opening decline. The Hang Seng Index opened 1.15 per cent lower at 24,985, while its technology index dropped around 1.4 per cent.
Mainland Chinese equities were also weaker. The Shanghai Composite opened 0.31 per cent lower, while Shenzhen fell 0.6 per cent and the technology-heavy ChiNext declined around 0.9 per cent.
Seoul follows Wall Street lower
South Korea’s KOSPI opened 0.18 per cent lower at 7,038.85 as investors reacted to Wednesday’s losses on Wall Street and the renewed inflation threat created by higher energy prices.
Australia’s S&P/ASX 200 was among the region’s weakest major markets, falling around 1.5 per cent, while Taiwan also traded lower.
Oil becomes the key market risk
The dominant issue across Asian trading was crude oil. Brent traded around $101.40 a barrel after breaking through $100 on Wednesday, a level increasingly viewed by investors as significant for the global inflation outlook.
Higher oil prices threaten to push transport, manufacturing and consumer costs upwards just as central banks are attempting to control inflation.
US 10-year Treasury yields remained near their highest levels since 2023, adding further pressure to equities. Investors are now watching US producer and consumer inflation figures closely for clues about the Federal Reserve’s next move.
Thursday’s Asian opening therefore carries a clear message: geopolitical risk has moved directly into financial markets through energy prices, inflation expectations and bond yields.
For now, caution is dominating the region.
Newshub Editorial in Asia – 10 September 2026
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