Asian stocks traded lower on Wednesday, mirroring overnight declines on Wall Street, as political uncertainty in Japan weighed on investor sentiment.
Oil prices, meanwhile, were steady in early Asian trading, supported by sanctions-related gains and expectations of a drawdown in US stockpiles, according to news agency Reuters.
Japan’s benchmark Nikkei 225 edged down 0.2% to 42,222.36 after weeks of uncertainty surrounding Prime Minister Shigeru Ishiba’s political future. Calls have been mounting for his resignation following an election setback, while the ruling Liberal Democratic Party faced fresh turbulence after Ishiba’s key ally Hiroshi Moriyama announced he was stepping down as secretary general.
“The political tremor is domestic, with Prime Minister Ishiba’s key power broker signaling his resignation, shaking the foundations of the ruling party,” said Stephen Innes, managing partner at SPI Asset Management, as quoted by news agency AP.
Australia’s S&P/ASX200 slipped 1.1% to 8,800.60, Hong Kong’s Hang Seng dropped 0.2% to 25,438.60, and the Shanghai Composite fell nearly 1% to 3,821.62. South Korea’s Kospi, however, managed a 0.3% gain to 3,181.37.
On Wall Street, the S&P 500 slid 0.7% in its worst day in a month, pressured by declines in Big Tech stocks such as Nvidia, Amazon and Apple. Rising Treasury yields also added to the selling pressure, with the 10-year yield climbing to 4.27%.
In energy markets, Brent crude slipped 1 cent to $69.13 a barrel, while US West Texas Intermediate gained 4 cents to $65.63, Reuters reported. Prices had risen more than 1% in the previous session after Washington imposed sanctions on a shipping network accused of smuggling Iranian oil.
Analysts also pointed to expectations of a 3.4 million-barrel decline in U.S. crude inventories last week.
Traders are now eyeing the Opec+ meeting scheduled for September 7, with analysts anticipating no major changes in output policy.
Still, soft economic data, including a sixth consecutive month of contraction in US manufacturing, capped oil’s gains, according to Reuters.
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Read MoreThe TOI Business Desk is a vigilant and dedicated team of journalists committed to delivering the latest and most relevant business news from around the world to readers of The Times of India. The primary focus of the TOI Business Desk is to keep a watchful eye on the global business landscape, covering a wide spectrum of industries, markets, economic trends, in-depth analysis, exclusive reports and breaking stories that impact businesses and economies. With a mission to provide valuable insights and updates, the desk ensures that TOI readers are well-informed about the ever-changing and dynamic world of commerce and can navigate the complexities of the business world.
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