Asian Stocks Set to Fall as Oil Surges Past $100: Markets Wrap

Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomePMN BusinessAsian Stocks Set to Fall as Oil Surges Past $100: Markets WrapStocks in Asia were poised for declines after a sharp Wall Street selloff, while oil surged above $100 a barrel for the first time in two months as an escalating Middle East conflict stoked fears of renewed inflation.Author of the article: You can save this article by registering for free here. Or sign-in if you have an account.m}e3k94{nne(rs[}u2ptta3n_media_dl_1.png ICE(Bloomberg) — Stocks in Asia were poised for declines after a sharp Wall Street selloff, while oil surged above $100 a barrel for the first time in two months as an escalating Middle East conflict stoked fears of renewed inflation.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountEquity-index futures pointed to losses in Australia, Japan and South Korea after the S&P 500 fell 1.2%, its biggest one-day drop in a month, and the tech-heavy Nasdaq 100 lost 1.9%. A gauge of megacap stocks suffered its worst session since the tariff-driven market rout in April 2025, underscoring investors’ retreat from risk assets.West Texas Intermediate crude extended gains in early Asian trading after global benchmark Brent closed at $100.69 a barrel Thursday, pushing Treasury yields and the dollar higher. The moves came as US President Donald Trump threatened to intensify the conflict with Iran after Houthi militants attacked two Saudi Arabian oil tankers in the Red Sea, fueling concerns over potential disruptions to global energy supplies.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againThe spike in energy prices has revived prospects that inflationary pressures may prove more persistent, complicating the Federal Reserve’s policy path. Money markets now fully price in a Fed interest-rate increase by September, with investors now monitoring whether a sustained rise in oil prices spills over into broader inflation expectations and corporate earnings.“Escalating Middle East tensions have pushed crude prices higher, raising concerns that inflation could re-accelerate and delay interest-rate relief, maybe even cause the Fed to hike,” said Sameer Samana at Wells Fargo Investment Institute. “We think oil prices eventually normalize, but appreciate that things may get worse before they get better.”The latest escalation has increased strains on global energy supply chains. Fighting around Iran has already disrupted shipping through the Strait of Hormuz, the gateway to the Persian Gulf, while attacks in the Red Sea threaten the alternative route Saudi Arabia has relied on to keep crude flowing.The market is also contending with a spate of attacks at the Caspian Pipeline Consortium terminal on Russia’s Black Sea coast, which exports most of Kazakhstan’s crude. Inventories across the globe are depleted by months of conflict, raising the risk of a supply squeeze that threatens to weigh on the global economy if prices continue to climb. “Round 2 of the military conflict is going to be broader than Round 1,” Bob McNally, president of Rapidan Energy Group and a former White House official, said in a Bloomberg Television interview, referring to the Iran war. “The risks are great, not only to shipping, but also to energy infrastructure.” The geopolitical backdrop is adding to investor scrutiny of the AI trade, with markets increasingly demanding evidence that massive spending on artificial intelligence will generate commensurate earnings growth. Alphabet Inc. fell 6.9% after raising its capital-expenditure forecast, while Tesla Inc. tumbled 15% as profits disappointed despite strong electric-vehicle deliveries. Alongside Alphabet, Meta Platforms Inc., Microsoft Corp. and Amazon.com Inc. telegraphed in April they’d be spending as much as $725 billion this year on AI ambitions.This advertisement has not loaded yet.This advertisement has not loaded yet, but your article continues below.“It’s still early, and we’ll see more earnings from the hyperscalers next week,” said Matt Maley at Miller Tabak. “So, we cannot declare that they are seeing the same kind of negative reaction to their earnings reports as the chip stocks, but this action does raise more concerns about this ‘sell the news’ issue.”Elsewhere, European Central Bank President Christine Lagarde laid the groundwork for a possible interest-rate increase in September after policymakers unanimously left the deposit rate at 2.25%.Lagarde’s comments added to a broader reassessment of the global interest-rate outlook. Markets now fully price in a Fed rate increase by September, with futures also implying better than a one-in-three chance of a move at the July 28-29 meeting, even though economists surveyed by Bloomberg expect policymakers to remain on hold this month.“While we believe there is significant risk of the Fed deciding to hike rates later this year, the pricing for next week’s meeting looks extreme as the Fed likely wants to observe the path of core inflation over the next several months before making a decision on hikes,” said Gennadiy Goldberg at TD Securities.Intel Corp. delivered a surprisingly strong revenue forecast for the current period, indicating that a surge in data center spending is helping fuel the chipmaker’s turnaround.Advanced Micro Devices Inc. announced a raft of new products for data centers that it said will outperform those from rival Nvidia Corp., aiming to make gains in a booming market for AI computing.Texas Instruments Inc., the biggest maker of analog and embedded processing chips, gave a sales forecast that topped estimates but failed to excite investors, who had bid up the company’s shares this year.Some of the main moves in markets:S&P 500 futures were little changed as of 7:02 a.m. Tokyo timeHang Seng futures fell 1.3%S&P/ASX 200 futures fell 0.6%The Bloomberg Dollar Spot Index rose 0.3%The euro was little changed at $1.1378The Japanese yen was little changed at 163.83 per dollarThe offshore yuan was little changed at 6.7777 per dollarThe Australian dollar was little changed at $0.6967Bitcoin was little changed at $65,110.25Ether fell 0.2% to $1,880.72West Texas Intermediate crude rose 0.4% to $92.52 a barrelSpot gold was little changedThis story was produced with the assistance of Bloomberg Automation.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. 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