Asian stocks slide as oil tops $100 ahead of U.S. inflation data

  • Asian stocks declined as Middle East shipping attacks kept oil prices above $100.
  • Brent crude eased to $101.11 after crossing $100 for the first time since July.
  • U.S. inflation data will influence expectations for the Federal Reserve's Sept. 15-16 meeting.

Asian stocks fell as intensified attacks on shipping in the widening Middle East war kept oil above $100 a barrel and heightened inflation concerns before key U.S. data. Brent crude eased to $101.11 after crossing $100 for the first time since July, while MSCI's broadest Asia-Pacific index outside Japan dropped 0.7%. The Treasury Department's $6 billion buyback of longer-dated bonds disappointed some investors, leaving 10-year U.S. Treasury yields at 4.8407%. Markets are watching U.S. producer and consumer price data for clues about whether the Federal Reserve will raise rates at its Sept. 15-16 meeting, with Fed funds futures implying about 60% odds. The European Central Bank was expected to raise rates, while the Bank of Japan was widely expected to increase rates the following week. The yen has risen 4% in September, and analysts said a hawkish BOJ message would be needed to sustain its rally.

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