Asian Markets Muted As UAE Exits OPEC; Hang Seng Up 1%, Nikkei Down 1%, Brent Above $110

Mumbai: Asian indices were muted on Wednesday as market participants were jittery after the United Arab Emirates said it will leave the Organization of the Petroleum Exporting Countries after 60 years of participation from May 1.

Brent crude oil futures hovered above $110 per barrel, and concerns about the war in West Asia prolonging capped gains in equities. "With the UAE leaving, Opec loses about 15% of its capacity and one of its most compliant members," Saul Kavonic, head of energy research at MST Financial, told BBC.

Meanwhile, the Hang Seng index defied the broader market sentiment to be up over 1%. South Korea's benchmark KOSPI was marginally lower as heavyweights Samsung Electronics Co., SK Hynix, LG Energy Solution, and Hyundai Motor Co. fell almost 1% each. On the macroeconomic front, Australia's inflation jumped to 4.6% in the year to March, from 3.7% in February. This is the steepest rise in the country's inflation in two years and it was driven higher by high energy prices.

The case for the Reserve Bank of Australia hiking its interest rates next week has strengthened after this higher-than-expected inflation print. Australia's benchmark S&P ASX 200 was down 0.2%.

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