As Fed and BoJ Hold Rates, Stocks Fall, Brent Rises – Asia Market Wrap

Global shares fell for a second day as attacks on major energy infrastructure in the Middle East drove oil prices higher, fuelling investor concerns that an intensifying war could add to inflation pressures.

MSCI’s global stock index lost 0.6%, while the Asian benchmark dropped 2.8% as investors reduced risk. Japan’s Nikkei 225 fell more than 3.5%, with traders particularly concerned about the Yen’s likely breach of 160 against the Dollar. Futures on the Euro Stoxx 50 Index plummeted nearly 2%, while US futures moved lower after the S&P 500 and Nasdaq 100 sank 1.4% on Wednesday.

Brent crude rose beyond $112 a barrel as strikes by Iran and Israel on critical energy facilities, which also damaged the world’s largest liquefied natural gas export plant in Qatar, stoked concerns about the conflict’s long-term impact.

The rise in oil prices has already raised concerns among global central bankers about price pressures. The BoJ left interest rates constant on Thursday, following the Fed’s hold on Wednesday, with both indicating that the Middle East turmoil had obscured the policy outlook.

In other market news, the Philippine Peso fell past the critical 60-per-Dollar threshold as rising oil prices weighed on the country’s economic prospects. A broader measure of the Dollar was steady after climbing 0.5% on Wednesday. Gold prices steadied after falling nearly 4% the previous session.