08/10/2026
Asian stock markets fell for the second consecutive day, while US Treasury prices edged lower. The rise in oil prices has stoked fears that inflation could remain persistently high and prompt central banks worldwide to raise interest rates.
The MSCI Asia Pacific Index dropped 0.9%, with nine out of its 11 industry sectors in negative territory. Benchmark stock indices in Japan, South Korea and Singapore all declined. Mainland China’s stock market also fell when trading resumed after the holiday. Samsung Electronics’ share price slipped 0.9%, even though the firm’s record profits still fell short of analysts’ average estimates.
On the other hand, Brent crude rose 2.2% to surpass $102 per barrel. The rally came as the White House asked the Pentagon to draw up plans for strikes against Iran that could be carried out before the midterm elections, while storms disrupted some crude oil output in the United States. In addition, Iran-backed Houthi militants attacked two airports in Saudi Arabia, killing three people. The group has escalated attacks on Saudi Arabia while fighting forces backed by Riyadh in Yemen.
US Treasury prices declined, with the benchmark 10-year Treasury yield climbing 2 basis points to 5.31%.
Higher oil prices add to inflationary pressures and complicate the outlook. The Federal Reserve raised interest rates last month, a move backed unanimously by officials. Even so, US equities were largely unaffected by the rate hike and rising oil prices, continuing to hit all-time highs. However, the earnings season kicking off next week will test whether billions of dollars invested in artificial intelligence development can deliver commensurate returns.
Last month, all 19 Fed officials voted to lift the target range for the federal funds rate by 0.25 percentage points to 3.75%–4%. It marked the first rate increase since July 2023. Policymakers made the decision after seeing signs of economic recovery.
Across other market segments, gold prices neared a nine-week low as fresh tensions in the Strait of Hormuz amplified concerns over war-fueled inflation. Investors are also weighing the odds of at least one more US rate hike this year.
Geopolitical strife has roiled energy markets and sent oil prices surging, pushing transport costs higher in tandem. Rates for hiring supertankers to ship oil hit new highs, sharply lifting costs across the entire oil supply chain.
Meanwhile, the euro held steady against the US dollar. Traders are closely watching France’s fiscal woes, which could trigger the most intense standoff between the European Central Bank and markets since the eurozone debt crisis. France’s Finance Ministry stated it will not alter its bond issuance strategy.
