Asian stocks fell sharply as Brent crude rose above $100 a barrel and bond yields climbed, driving a broad risk-off move that overwhelmed gains in some artificial-intelligence shares. The MSCI Asia Pacific index declined 1.3%, while South Korea’s KOSPI dropped 2.4%, Japan’s Nikkei 225 fell 2.9% and Hong Kong’s Hang Seng lost 1.5%. The selloff followed Wall Street’s fourth consecutive decline and came after the U.S. producer price index rose 0.4% in August, lifting annual producer inflation to 5.4%. Markets now price about a 70% chance that the Federal Reserve will raise rates next week, with the consumer price report representing the next major test of whether higher energy costs are spreading through the economy. Semiconductor stocks also declined, although SK Hynix and Samsung Electronics remained higher for the week. Oracle’s stronger-than-expected cloud growth and record $664 billion backlog showed that demand for AI infrastructure remains strong. In China, Tencent-backed Shanghai Enflame Technology surged about 200% in its Shanghai debut after raising 6.12 billion yuan ($912 million), defying the broader market weakness and highlighting demand for domestic AI-chip alternatives to Nvidia. Oil remained the dominant macro risk as Brent traded around $107.66 a barrel after nearing $110, up nearly 13% for the week, while disruptions around the Strait of Hormuz and the advance of Iran-backed Houthi forces toward Mokha near the Bab al-Mandeb Strait raised further concerns about regional energy and shipping flows.