Asia shares weaker, oil up as investors weigh Saudi-Houthi escalation
USO•Asian shares fell, with MSCI’s Asia-Pacific index excluding Japan down 0.5%, while oil rose amid a Gulf of Mexico storm threat and escalating Saudi-Houthi tensions. Brent gained 1% to $101.58 a barrel and U.S. crude rose 0.9% to $90.22.
1. Shares and oil
Asian markets were slightly weaker on Wednesday despite record closes for the S&P 500 and Nasdaq. MSCI’s broadest index of Asia-Pacific shares excluding Japan fell 0.5%, while Brent crude rose 1% to $101.58 a barrel and U.S. crude gained 0.9% to $90.22.
2. Supply and rate concerns
Oil investors weighed a storm threat to North American oil-producing regions and Houthi attacks on Saudi Arabia against increased Middle East crude supplies. Vitol CEO Russell Hardy said about 12 million barrels per day of crude and 2 million barrels per day of refined products had left the Middle East on tankers in the previous seven to 10 days.
3. Regional developments
India’s central bank raised its benchmark interest rate by 25 basis points to 5.5%, its first hike in nearly four years, as it sought to rein in rising inflation. The U.S. 10-year Treasury yield rose 3.8 basis points to 5.307% in Asian trading ahead of a same-maturity note auction.
