Brent crude oil approaches $100 Asian market pressure: China's import inflation risk rises again

The most striking figure on the market screen is approaching three digits: Brent crude is about $99.According to Reuters.The escalation of conflict in the Middle East has driven oil prices to rise, and the Asian markets have recalculated inflation, interest rates and corporate costs.

09:00 PM Oil prices are approaching psychological threshold

Brent crude futures rose to close to $99 per barrel, while West Texas medium crude oil rose to around $94. $100 itself is not an economic magic number, but will significantly change the expectations of traders, and consumers.

10:00 – Asian stock markets begin to divide

Markets such as Japan and Hong Kong are under pressure, while South Korea and Taiwan are still supported by parts of the chip and AI stocks.The energy shock is undermining overall risk preferences, while the tide of science and technology investment continues to keep some of the funds in the high-growth segment.

The market is now trading not this barrel of oil today, but “how long the high oil price will last.”

How a barrel of crude oil enters the Chinese business register

The rise in crude oil first affects refining and transportation, and then into chemical, plastic, logistics and manufacturing.China PPI and CPI in August have shown signs of energy drive; if high oil prices continue, import costs will increase further.

The most difficult cost transfer when demand is weak

For Chinese enterprises, risk is not just “expensive”.If the end demand is not strong, enterprises can not transfer the price increase of raw materials to consumers, the profit rate will be compressed.This is also one of the biggest differences between import inflation and demand inflation.

Financial flows to evasion and interest rate expectations warm up at the same time

• Gold is backed by risky demand;
• the yen is stronger influenced by Japanese central bank policy expectations;
• European markets await central bank policy signals;
• U.S. markets are concerned about the next steps of the CPI and the Fed.

What to See Before Closing

First, see if Brent really breaks and stays $100; second, see if shipping and insurance prices rise simultaneously; third, see if energy price increases continue to transmit to China’s PPI.