Asian markets dip as oil climbs amid Saudi-Houthi tensions and Gulf storm

In Asian trading, the broad MSCI index for the region excluding Japan slipped 0.3% despite a rally in U.S. equities, where the S&P 500, Nasdaq and Dow all hit fresh records. Crude oil rose about 1% as a tropical system headed toward the Gulf of Mexico and Houthi militants intensified attacks on Saudi Arabia, tightening perceived supply. Vitol's chief Russell Hardy noted that millions of barrels of crude and refined products have recently left the Middle East on tankers.

French bond markets steadied after Marine Le Pen pledged spending cuts, narrowing the spread between French and German yields and supporting the euro above $1.1250. European bonds, including Italian and Greek issues, performed well in a broader rally. In the United States, ten-year Treasury yields fell to around 5.3% and longer-dated yields edged higher ahead of a 10-year auction later in the day and a 30-year auction the following day, while the Fed prepares to publish its September policy minutes.