Sustained Rise In Oil Prices Stoked Fears of Elevated Inflation In China and Asia

Li Chen
10 Sep, 2026
Hong Kong

Surging oil prices across Asia fueled concerns over inflation, and benchmark indexes faced headwinds in Thursday's trading. 

The Hang Seng Index decreased 1.4%, and the mainland-focused CSI 300 Index declined 0.3% as investors remained focused on rising tensions in the Middle East. 

The Brent crude oil price per barrel rose 0.2% to $101.04 after the U.S. and Iran exchanged military strikes over the Strait of Hormuz. 

The U.S. president confirmed that the war with Iran is likely to drag at least two more months, despite repeatedly claiming otherwise over the last seven months. 

Elevated crude oil prices stoked fears of higher food and transportation costs across the globe and stoked broader inflation amid heightened supply disruption concerns. 

Earlier in the week, China's statistical bureau confirmed the pickup in annual inflation in August, driven by a faster rise in food and transportation expenses.  

In overnight trading in New York, the S&P 500 Index decreased 0.5% and the tech-focused Nasdaq Composite declined 0.6% as the yield on 10-year Treasury notes advanced to a 3-year high of 4.81%. 

Benchmark indexes in Germany fell 1.7%, in France decreased 2%, and in the U.K. declined 1.6%. 

 

China Indexes and Stocks 

The Hang Seng Index decreased 1.4% to 24,933.44, and the mainland-focused CSI 300 Index fell 0.3% to 4,557.70. 

CATL decreased 0.1% to $561.50, Zhongji Innolight declined 1.7% to $1,153.0, Eoptolink Technology edged up 0.02% to ¥414.89, and Foxconn Interconnect Technology increased 3.3% to $5.48.  

Ping An Insurance declined 1.5% to HK $54.55, China Construction Bank increased 0.8% to HK $9.69, and Hong Kong Shanghai Bank Holdings plc fell 1.1% to HK $164.10.