Asian Markets: Stocks Struggle, Oil Price Jump Saps Sentiment
Stocks in Asia struggled to gain traction and US equity futures fluctuated as negative sentiment persisted in markets amid fear that global central banks will keep hiking rates until inflation is tamed, raising the risk of a recession.
Equities made small gains in Japan and dropped in Hong Kong and Australia. Trading in Asia may be muted by a holiday in Sydney and South Korea on Monday and the week-long closure of Chinese markets for Golden Week.
Oil surged to trade near $82 a barrel on indications the OPEC+ alliance is considering slashing production by more than 1 million barrels a day to revive plunging prices when it meets this week. Commodity currencies gained. Those moves increase the risk of more inflation that may prompt central banks to take further aggressive policy action.
Shorter Treasury yields fell more than longer ones in a so-called bull-steepening, with the yield on two-year note at around 4.2% and the 10-year at about 3.8%. The dollar fell slightly.
https://www.bloomberg.com/news/articles/2022-10-02/asia-stocks-set-for-cautious-open-after-sept-rout-markets-wrap?srnd=markets-vp
