Emerging Asia stocks fall on $100 oil, high US yields
Most emerging Asian stock markets slipped on Wednesday, led by declines in Singapore and South Korea, as higher oil prices and US Treasury yields near multi-year highs weighed on investor sentiment. Crude climbed back above $100 a barrel as a storm heading for North American oil-producing regions and Houthi attacks on top exporter Saudi Arabia raised supply worries. The Reserve Bank of India hiked rates by 25 basis points.
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3% vs dollar, other Asian currencies steady By Nikita Maria Jino Oct 7 (Reuters) — Most emerging Asian stock markets slipped on Wednesday, led by declines in Singapore and South Korea, as higher oil prices and US Treasury yields near multi-year highs weighed on investor sentiment. Crude climbed back above $100 a barrel as a storm heading for North American oil-producing regions and Houthi attacks on top exporter Saudi Arabia raised supply worries. US Treasury yields, meanwhile, held near 24-year highs hit earlier in the week amid inflation and European debt contagion concerns.
O/R US/ The combination is a familiar headwind for emerging Asia, where many economies are net oil importers and higher US yields draw money away from the region's relatively riskier assets. "The macro backdrop that weighed on the region through September hasn't materially improved. Investors aren't fleeing EM Asia outright, but they are hesitant to add risk with the US Federal Reserve's next move on rates still uncertain," said Inki Cho, senior financial market strategist at online trading platform Exness. Markets are awaiting minutes of the Fed's September meeting, when it raised rates by a quarter point, later in the day for potential clues on the path for policy.
Meanwhile, the Reserve Bank of India hiked rates by 25 basis points in its first increase in nearly four years, as Asia's third-largest economy tackles persistent inflationary pressures brought on by the Iran war. The RBI's hike "confirms the regional trend rather than bucking it," Cho said. 36 per dollar following the decision. 4%, with investors cautious ahead of chipmaker Samsung Electronics' preliminary quarterly earnings, due on Thursday, to assess the outlook for AI demand.
2% to hit their lowest since December 2025. 7%. FTSE Russell said in its September fixed-income country classification announcement that Indonesia's Secondary Emerging market status remains unchanged as it continues to monitor the country's capital market integrity reforms. The update comes ahead of MSCI's review in November to assess the slate of measures rolled out to improve the transparency and investability of Indonesian assets.
Regional currencies were largely steady against an unchanged US dollar. 3%. 3%, while its EM currencies gauge was largely flat. com;)