Asian stocks wilt as Brent holds above $100, yields near 2023 peak

Business Recorder reported that Asian markets slid on Thursday as a heavy round of attacks on ships during the spreading Middle East war kept crude above $100 a barrel. Brent futures had moved through that level on Wednesday, a first since July, and early Thursday trading lifted them to $101.4 a barrel. Traders are also waiting on US inflation figures that bear on the Federal Reserve's next move.

The 10-year US Treasury yield held at 4.8406%, after reaching its highest level since 2023 in the previous session. A $6 billion repurchase of longer-dated debt, unveiled by the Treasury Department, left some investors wanting more. MSCI's broadest Asia-Pacific index excluding Japan dropped 1%, while Japan's Nikkei and South Korea's KOSPI each fell more than 1%.

Nick Twidale of ATFX Global described Brent's move through $100 as a significant development, while OCBC's Vasu Menon pointed to a cocktail of headwinds for September. Traders in fed funds futures put the chance of a Fed increase next week at about 60%, and analysts broadly anticipate a BOJ rate increase. The yen has strengthened 4% so far in September, and officials' tone next week is seen as key to sustaining that gain.