Asian markets trade lower as investors weigh oil price pressure and upcoming company results. Japan’s Nikkei eases about 0.4% after dropping roughly 2% over the prior week, following gains that had left it near record levels. Elsewhere, S&P 500 futures are also weaker, pointing to a cautious start for US trading ahead of major updates, including Nvidia’s results.
Oil prices rise following reports of drone attacks in the Gulf, which increases concerns about supply risk and adds to near-term inflation expectations. That move in energy costs spills into bond markets, where yields face pressure as traders adjust expectations for policy and rates. Across the region, the combination of softer equities and higher oil is reflected in generally cautious sentiment, with investors monitoring both geopolitical developments in the Gulf and company-specific catalysts in the US.
