Asian equity futures pointed to a cautious open for stock markets around the region on Wednesday after US shares fell and a rally in oil increased concern about inflation.
US Treasuries sank, adding to the downdraft, with yields pushing up across the curve as at least 40 businesses tapped high-grade markets around the world Tuesday.
Contracts for Hong Kong’s Hang Seng Index rose just 0.1%, those for Japan’s Nikkei 225 added 0.3% and futures for Australia’s S&P/ASX 200 slipped 0.2%. The S&P 500 ended below 4,500 Tuesday while an index of small caps slid about 2% and a gauge of homebuilders sank 5.5%.
The gains in oil are a headwind for much of Asia and put upward pressure on inflation, which in turn keeps policy interest rates high and drags on economic growth. Brent oil rose above $90 a barrel for the first time since November as the largest OPEC+ producers extended their supply cuts to year-end.
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