[MARKET ANALYSIS] Asia-Pac stocks declined after recent surge in oil and hawkish Powell comments

APAC Stocks: Negative

• Asia-Pac stocks declined as the region took its cue from the losses stateside, where the major indices suffered amid higher oil prices and yields, following energy infrastructure attacks in the Middle East and hawkish Powell comments.

ASX 200: -1.6%

• Index was dragged lower by notable selling in miners, materials and real estate, with sentiment also not helped by mixed jobs data.

Nikkei 225: -2.7%

• Suffered from the higher oil prices, and with markets also awaiting the BoJ policy decision and the Trump-Takaichi summit on Thursday.

Hang Seng & Shanghai Comp: Hang Seng -1.6% / Shanghai Comp -1.1%

• Chinese markets conform to the broad risk-off mood with tech hit by weakness in semiconductors and following Tencent's earnings, while miners and airlines are also pressured after a recent decline in metal prices and surge in oil.

US Equity Futures: +0.2%

• Attempted to nurse losses after sliding on higher oil prices and a hawkish-leaning Powell.

European Equity Futures -1.0%

• Indicate a lower cash market open with Euro Stoxx 50 futures down 1.0% after the cash market closed with losses of 0.6% on Wednesday.

The decline in Asia-Pacific stocks is largely influenced by rising oil prices and hawkish comments from Fed Chair Powell, reflecting heightened concerns about inflation and geopolitical tensions, particularly in the Middle East. This negative sentiment is expected to weigh on market outlooks, especially in commodities and sectors sensitive to energy costs. Traders should monitor the upcoming BoJ policy decision and broader global responses, as they could further impact risk sentiment and asset prices in the region.