Global Stocks Drop to One-Week Low as Oil Rallies - Asia Market Wrap

Global stocks fell to a one-week low as surging oil prices and growing expectations for further Fed rate hikes pushed Treasury yields toward multi-year highs. MSCI’s All Country World Index slipped 0.2%, while Asian equities fell around 1% and Nasdaq 100 futures dropped 0.4%. Treasuries stabilized in Asia after heavy selling in New York. The US 10-year yield remained near 5.25% after reaching its highest level since 2007, while the 30-year yield edged higher to 5.56%. The Dollar also strengthened against most major peers. Brent rose for a second day, gaining almost 2% to around $107.30 a barrel as hopes for a near-term diplomatic breakthrough in the Middle East faded. Higher crude prices continued to feed inflation concerns and reinforce expectations that interest rates may remain elevated. Gold rose 0.3% to around $4,130 an ounce after falling almost 4% on Monday, while silver steadied near $60.60. Chinese equities were little changed after authorities signalled greater urgency in supporting the economy, with mainland shares having touched a one-year low on Monday. Japanese stocks fell more than 1%, though moves were amplified by more than half of Topix constituents trading ex-div