Asian stock markets rose on Wednesday as technology shares recovered from the previous session’s selloff. Gains remained limited as rising oil prices heightened concerns about energy supplies and investors awaited US inflation data for clues on the Federal Reserve’s interest-rate outlook.
MSCI’s broadest index of Asia-Pacific shares outside Japan gained 0.8% after touching a 10-week low in the previous session. Nasdaq futures advanced 0.3%, while European stock futures climbed 0.4%.
South Korea’s Samsung Electronics rose 2.4%, while SK Hynix gained 0.8%. Taiwan Semiconductor Manufacturing Company added 1.4%, and Japan’s SoftBank Group rebounded 3.4%.
‘Investors continue to decisively favor tech’ including the semiconductor and hardware sectors, with concerns about stretched valuations having eased, Bank of America said in a survey of Asian fund managers.
Crude prices advanced after two vessels were struck in the Strait of Hormuz. Iranian officials also told Reuters that the country was adopting new tactics to target shipping. US crude rose 0.6% to USD 94.70 a barrel, while Brent crude reached USD 106.27, hovering near a two-week high.
Investors also sought safety in longer-dated US government bonds. The yield on 10-year Treasury notes stood at 5.204%, while the 30-year yield held at 5.553% after declining for three consecutive sessions.
On Wall Street, bank stocks weakened following mixed quarterly earnings from Citigroup and other lenders. US stock futures later edged higher, with S&P 500 e-minis gaining 0.2%.
Investors awaited September’s US consumer price index (CPI) report for signals on the Federal Reserve’s next policy move. Economists expected annual headline inflation to accelerate to 3.6%, while core CPI was forecast to rise 0.2% month on month.
New York Federal Reserve President John Williams said another rate increase could be needed this year to control inflation, although he saw no need for hikes in 2027.
Meanwhile, China’s producer prices recorded their fastest annual increase in more than four years in September. Consumer inflation also edged higher as rising oil and commodity costs pushed up prices, despite weak domestic demand.
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