As US Strikes Iran, Oil Prices Rise & Stocks Lose Steam – Asia Market Wrap
Brent crude rose 1.2% to $78.94/bbl, marking a third consecutive day of gains after the US carried out another wave of strikes against Iran. Asian equities pared earlier gains to trade up just 0.1% as a rally in semiconductor stocks faded, while US equity futures fluctuated between gains and losses before trading little changed.
Government bonds declined across Japan, Australia and New Zealand, extending the global selloff in fixed income as investors increased bets the Fed will raise interest rates to contain inflation. Treasuries were little changed in Asian trading after the policy-sensitive 2Y yield approached its highest level of the year on Wednesday.
Gold fell for a fourth straight session to around $4,060/oz as expectations for higher interest rates reduced the appeal of non-yielding assets. Silver also declined 0.8% to $57.85/oz.
Meanwhile, shipping through the Strait of Hormuz slowed to a near standstill after the US launched strikes on Iran for a second consecutive day, reinforcing concerns over disruption to one of the world’s most important energy transit routes.
