Singapore, 1 September 2026 – Asian equities moved lower as renewed Middle East fighting lifted oil prices above US$91 a barrel, reviving inflation concerns and strengthening expectations for tighter monetary policy. The MSCI Asia Pacific Index fell 0.2%. Japan's Topix declined 0.3%, Australia's S&P/ASX 200 lost 0.4% and Hang Seng futures dropped 0.4%. US equity futures were little changed after the S&P 500 fell 0.3% in the previous session.
Brent crude extended gains after the United States and Iran exchanged attacks around the Strait of Hormuz. The US 10-year Treasury yield rose three basis points to 4.75%, its highest since January 2025. Markets increased bets on a September Federal Reserve rate increase while awaiting employment and inflation data. The figures should be considered within the broader setting of Asian equity markets and geopolitical risk, where short-term market reactions can differ from the longer-term economic effect.
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