Asian equities show mixed performance as oil prices near $100 per barrel

Asian stock markets displayed mixed movements on Wednesday amid cautious sentiment. Japan's Nikkei 225 fell 0.2% to 65,142.78, while South Korea's Kospi rose 1.4% to 7,051.64. Hong Kong's Hang Seng slipped 0.3% to 25,244.15, and Shanghai's Composite gained 0.4% to 3,956.08. Australia’s ASX 200 edged down 0.1% to 8,911.40, Taiwan’s Taiex rose 0.2%, and India’s Sensex fell 0.8%.

U.S. equity indices declined after the market reopened following a three-day holiday, with the S&P 500 down 0.6%, the Dow Jones Industrial Average down 1.2% and the Nasdaq Composite down 0.3%.

Oil prices continued to climb, pushing Brent crude up 1.6% to $99.48 a barrel and U.S. crude to $94.35, reflecting heightened tensions in the Middle East that are tightening global oil supplies and adding to inflation concerns.

Investors are awaiting a key U.S. consumer-price report due on Friday, which is expected to show inflation easing to about 3.3% from July’s 3.4%, still above the Federal Reserve’s 2% target. Meanwhile, the yield on the 10-year Treasury increased to 4.79%, near its highest level since late 2023.

The Federal Reserve is scheduled to meet next week to decide on monetary policy, while the Bank of Japan is also set to review its benchmark rate, with markets anticipating a possible hike.

"Treasury Secretary Scott Bessent delivered an unusually forceful message to yen bears, declaring that traders could ‘bet against’ him following the joint U.S.-Japan yen intervention on 31 July," said Ng Jing Wen, an analyst at Mizuho Bank.

In currency trading, the U.S. dollar slipped to 153.33 yen, and the euro rose slightly to $1.1641.