The market moves came as investors watched inflation data in the United States and prepared for the Federal Reserve’s upcoming meeting. Energy prices, bond yields and geopolitical uncertainty continued to shape trading decisions across global markets.
Asian Shares Follow Wall Street Lower as Technology Stocks Decline
Most major Asian indexes moved lower on Friday. Japan’s Nikkei 225 fell 2.8% to 63,442.30, while shares of SoftBank Group, which has invested in OpenAI, declined 4.1%. South Korea’s Kospi dropped 2.3% to 6,872.39, with Samsung Electronics falling 3.9% and memory chipmaker SK Hynix losing 3.6%.
Markets in China and Hong Kong also weakened. The Hang Seng index declined 0.8% to 24,753.54, while the Shanghai Composite index fell 1.8% to 3,862.73. According to the Associated Press, shares of Chinese artificial intelligence chipmaker Enflame rose about 180% during its trading debut in Shanghai, standing apart from the broader market decline.
Australia’s S&P/ASX 200 index dropped 1.2% to 8,712.20. Taiwan’s Taiex lost 1.7%, while India’s Sensex declined 1%. The declines followed a difficult session on Wall Street. The S&P 500 fell 0.6% on Thursday, marking its fourth consecutive loss. The Dow Jones Industrial Average also dropped 0.6%, while the technology-focused Nasdaq Composite declined 0.7%.
Investors were waiting for the release of the United States consumer price index for August, which was scheduled for Friday ahead of the Federal Reserve’s meeting next week. According to the Associated Press, the latest producer price index report showed prices increased 5.4% year-on-year in August, compared with 4.8% in July.
Oil Prices Rise as Tensions Affect Energy Markets
Oil prices continued to attract attention as concerns around supply disruptions increased. Brent crude, the international benchmark, reached $108.59 per barrel during early Friday trading, up 0.9%. U.S. benchmark crude rose 0.7% to $103.22 per barrel.
The rise in oil prices followed increasing tensions between the United States and Iran. Brent crude had traded around $72 a barrel in late February before the start of the war, according to the Associated Press.
The flow of oil through the Strait of Hormuz remained below previous levels. According to ING commodities strategists Warren Patterson and Ewa Manthey, the reduced movement through the narrow waterway, which is important for global oil transport, showed how fragile the situation had become.
Bond markets also reflected concerns linked to energy prices and inflation. The yield on the 10-year U.S. Treasury note rose to 4.96% early Friday from 4.83% on Wednesday, while investors continued to monitor government debt levels and inflation pressures.
Currency markets showed limited movement. The U.S. dollar fell slightly against the Japanese yen, trading at 154.35 yen compared with 154.42 yen previously. The euro was trading at $1.1605, down from $1.1612. Oil prices and global shares remained closely connected to developments in the Middle East, while investors continued to assess inflation data and central bank decisions that could influence financial markets in the weeks ahead.
