Tokyo and Asian stock markets declined this morning, following the drop in U.S. stocks overnight, after military conflict between the U.S. and Iran flared up again, pushing oil prices higher and raising inflation concerns, with expectations that the Fed will tighten monetary policy further. In the first 15 minutes of trading, the Nikkei index fell 664.68 points, or 1.00%, from Monday's close, to 65,647.25 points. Meanwhile, the Topix index rose 2.84 points, or 0.07%, to 4,159.13 points. At 9:47 a.m. Thailand time, the Nikkei 225 stood at 66,050.33 points, down 261.6 points, or 0.39%. The yield on 10-year Japanese government bonds rose to 2.985%, near its highest level in three decades, while the 10-year U.S. Treasury yield increased to 4.78%, the highest since January 2025. The MSCI Asia-Pacific stock index edged up 0.3%, supported by Taiwanese stocks. Shares of MediaTek Inc. surged 9.9% on the Taipei stock exchange after Nvidia Corp. announced a $3.5 billion investment plan in the chipmaker. In Hong Kong, shares of Shein Global Holdings Ltd. were steady in early trading after raising HK$13.6 billion (or $1.7 billion) through its initial public offering (IPO). Brent crude oil prices rose above $91 per barrel following a new round of fighting in the Middle East, with the U.S. and Iran launching retaliatory strikes for the first time in about a month. U.S. forces attacked an island in the Strait of Hormuz, and Iran responded by striking the United Arab Emirates and Jordan. The escalating tensions in the Middle East have undermined prospects for restoring shipping through the Strait of Hormuz, pushing oil prices higher and increasing inflation concerns. Money markets have increased expectations of a rate hike in September after Federal Reserve Chair Kevin Warsh delivered a hawkish message on inflation at Jackson Hole last week, making this week's jobs report more closely watched.
MediaTek IncMediaTek surges 9.9% after Nvidia announces $3.5B investment in the chipmaker.
NVIDIA CorporationNvidia announces $3.5B investment in MediaTek, but impact on Nvidia is indirect and minor.
