Asian shares drop as oil hits four-year high and yields climb
Asian stocks fell as Brent crude reached 125 dollars per barrel amid rising Iran tensions. Global bonds declined as the Federal Reserve signaled a hawkish shift.
Asian markets fell on Thursday morning as Brent Crude Oil surged 6% to $125 a barrel. It is the highest price for the global benchmark in four years following reports of potential United States military action in Iran. Surging energy costs and hawkish central bank signals are forcing investors to price out interest rate cuts for this year.
MSCI's Asia-Pacific index fell 1% on Thursday morning, while Japan's Nikkei 225 dropped 1.4%. Despite the daily slide, the Nikkei remains up 16% for April. South Korea's KOSPI hit a record high before reversing to close 0.8% lower. China's blue chips remained flat, while the Hang Seng index in Hong Kong fell 1.2%.
