Stocks trade warily in Asia, Brent off six-month top

Key Points:

• Stock markets showed cautious trading as oil prices eased from six-month highs amid ongoing efforts to de-escalate Middle East tensions, with Qatari mediators engaging in talks in Tehran.
• Brent oil prices fell 1.9% to $114.48 after surging last week due to Houthi attacks in Saudi Arabia, which raised concerns over energy supply stability; US crude also dropped 2.2% to $101.01 a barrel.
• Central banks face inflationary pressures from rising oil costs, with some expected to raise interest rates soon, including New Zealand this week, while the US Federal Reserve is likely to pause in October but may hike in December.
• Major tech companies like Microsoft, Amazon, and Alphabet are set to report earnings this week, which will test investor confidence in the AI sector amid higher bond yields and cautious market sentiment.
• Currency and commodity markets showed mixed movements, with the Japanese yen maintaining safe-haven status, the euro slightly strengthening after France avoided a credit downgrade, and gold prices rebounding modestly following last week’s decline.