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August 12, 2026 - 02:51
5 minutes
(Bloomberg) — Crude oil climbed as traders remained wary about the prospects for a Middle East deal, tempering the mood in the run-up to crucial US inflation data. Technology shares powered gains in Asian equities.Global benchmark Brent rose 0.6% to $89.50 a barrel, extending its rally to a sixth day. The advance came despite Pakistan’s defense minister saying the US and Iran are “close to some sort of arrangement” over the Strait of Hormuz, as both sides appeared to harden their positions in the long-deadlocked negotiations.Elsewhere, sentiment toward technology remained buoyant, with CoreWeave Inc. surging 16% in extended trading after booming artificial intelligence spending drove stronger-than-expected sales growth. Super Micro Computer Inc. rallied 7% in post market after its revenue forecast topped estimates.That helped MSCI’s Asia Pacific equities gauge advance 0.5%, with South Korea’s Kospi Index adding 2%. The robust tech earnings helped US equity-index futures edge up 0.1% after Wall Street gauges slipped on Tuesday.The guarded tone, ahead of Wednesday’s key US consumer price index reading, highlights how investors are weighing persistent geopolitical risks against uncertainty over the Federal Reserve’s next move on interest rates. Hopes for a breakthrough in negotiations took a hit after optimism about an imminent deal lifted risk assets last week.“As each day passes without a resolution, market angst is steadily increasing,” wrote Tim Waterer, chief market analyst at KCM Trade. “Traders are growing more concerned that both sides are advancing demands that only add complexity and therefore reduce the likelihood of a workable deal materializing in the near term.”In other corners of the market, the yen traded steady around 159.27 a dollar. Investors are watching the currency as it approaches a key level, raising concerns over Japanese authorities stepping in again to prop up the currency. The dollar was a touch weaker against most of its Group-of-10 peers.Treasuries steadied with the yield on the benchmark 10-year little changed at 4.69%. Gold recovered some of Tuesday’s losses, trading around $4,380 an ounce.Attention is firmly on the US CPI print Wednesday, which is expected to show that energy-related pressures have eased after intensifying in the months immediately following the start of the war.The headline gauge probably rose 0.1% in July following a 0.4% decline in the prior month, based on the median projection in a Bloomberg survey of economists ahead of Wednesday’s Bureau of Labor Statistics release.A softer reading may help alleviate some concern after three officials at the Federal Open Market Committee dissented in July in favor of raising interest rates.“Today’s inflation print is likely to be pivotal for September FOMC pricing, while a rangebound dollar continues to favour carry trades,” Oversea-Chinese Banking Corp. strategists including Moh Siong Sim wrote in a report. Meanwhile, “renewed oil volatility is a reminder that oil-sensitive Asian FX is not yet out of the woods.”Other US data Tuesday offered a mixed picture of the economy. Sales of existing homes fell to a three-month low in July as elevated prices and mortgage rates continued to weigh on the housing market. Small-business optimism, meanwhile, climbed to the highest in almost a year as firms stepped up hiring plans and inflation pressures eased.“We see crude oil prices driving the war narrative, with price swings likely to dictate the pace of escalation and de-escalation,” said Elias Haddad at Brown Brothers Harriman & Co.Corporate Highlights:Super Micro Computer Inc. gave a sales forecast for the current quarter that topped analysts’ estimates, a sign the booming artificial intelligence market continues to bolster sales of the company’s servers. CoreWeave Inc., a provider of computing that powers artificial intelligence systems, topped analysts’ estimates for second-quarter sales after signing up more customers in a booming market. SpaceXAI is rolling out new artificial-intelligence software that’s designed to act like a team of AI agents fielding assignments throughout the day, marking the latest bid by Elon Musk’s company to keep pace with Anthropic PBC and OpenAI. Some of the main moves in markets:StocksS&P 500 futures were little changed as of 9:47 a.m. Tokyo time Hang Seng futures fell 0.4% Japan’s Topix rose 0.5% Australia’s S&P/ASX 200 fell 0.4% Euro Stoxx 50 futures fell 0.1% CurrenciesThe Bloomberg Dollar Spot Index was little changed The euro was unchanged at $1.1542 The Japanese yen was unchanged at 159.28 per dollar The offshore yuan was little changed at 6.7471 per dollar The Australian dollar was little changed at $0.7066 CryptocurrenciesBitcoin was little changed at $63,669.45 Ether was little changed at $1,880.54 BondsThe yield on 10-year Treasuries was little changed at 4.69% Japan’s 10-year yield was unchanged at 2.820% Australia’s 10-year yield declined one basis point to 5.03% CommoditiesWest Texas Intermediate crude rose 0.7% to $83.81 a barrel Spot gold rose 0.3% to $4,381.70 an ounce This story was produced with the assistance of Bloomberg Automation.–With assistance from Ruth Carson.©2026 Bloomberg L.P.
