Asia stocks remain steady; oil drops below $100

Japan’s Nikkei 225 gained 0.27%, and the Topix index remained flat. In South Korea, the Kospi and the Kosdaq climbed over 1%. MSCI Inc.’s Asia-Pacific share index fluctuated amid mixed performance across the region, including a drop in Hong Kong but a climb in South Korea aided by a jump in Samsung Electronics Co. after its results. US futures fell following a choppy Wall Street session that produced modest gains.

The minutes of the Fed’s June meeting flagged the possibility of “even more restrictive" monetary policy to prevent entrenched inflation. That triggered a slide in Treasuries on Wednesday led by shorter maturities, but they pared some of that move in Asian trading.

Oil extended its retreat as recessionary concerns swept through global commodity markets and US industry estimates showed rising stockpiles. West Texas Intermediate sank below $97 a barrel, taking losses for the US benchmark to almost 11% so far this week. Escalating concern that a looming recession will erode energy consumption has driven prices lower even as the market continues to show signs that crude supplies remain tight at present.

Inversions along the US yield curve are among the signs of concern that higher rates could spark a recession and a reversal by the Fed in favor of looser policy later next year. Others include a broad retreat in commodities.

Data released Wednesday showed that US job openings dipped slightly in May but remained near a record, pointing to resilient demand for labor even as optimism about the economy’s prospects dim. Growth in the US services sector eased in June to a more than two-year low but exceeded estimates.

Meanwhile, China’s central bank looks set to withdraw cash from the financial system in a sign that it’s moving toward normalizing monetary policy as major global peers raise rates.

The yield on 10-year Treasuries advanced 12 basis points to 2.93%. Gold was at $1,739.92 an ounce.