Hong Kong, May 22: Asian shares advanced Friday following modest gains on Wall Street, while oil prices rose as efforts to end the Iran war yielded limited results.
Oil prices had eased Thursday in US trading, alleviating pressure from the bond market as yields fell. Earlier this week yields climbed so high they threatened to slow economies worldwide and undercut prices for stocks, bitcoin and all kinds of other investments.
US futures edged higher and Tokyo’s Nikkei 225 was up 2.7% at 63,352.44. A report showed inflation hitting a four-year low in April, at 1.4%, despite higher prices for oil and gas due to the war.
South Korea’s Kospi gained 0.6% to 7,860.59.
Hong Kong’s Hang Seng rose 1.2% to 25,685.65, while the Shanghai Composite index climbed 0.5% to 4,096.24.
Australia’s S&P/ASX 200 was up 0.5% at 8,664.00.
Taiwan’s Taiex was trading 1.5% higher, while India’s Sensex edged up 0.2%.
Oil prices remained elevated over disruptions around the Strait of Hormuz, a critical waterway for oil and gas transit, with shipping activities still well below before the Iran war began in late February. Talks between the US and Iran have dragged on, adding to uncertainty.
Republicans in Congress struggled Thursday to find the votes to dismiss legislation that would compel President Donald Trump to withdraw from the war, delaying planned votes on the matter into June.
Brent crude, the international standard, gained 1.5% to USD 104.08 a barrel. It was around USD 70 per barrel in February before the war’s start. Benchmark US crude traded 0.9% higher at USD 97.25 a barrel.
“Markets are still searching for signs of progress in a potential deal between the US and Iran,” ING commodities strategists Warren Patterson and Ewa Manthey wrote in a note on Friday. “While there are signs of optimism, uncertainty reigns.”
Wall Street gained on Thursday, with the benchmark S&P 500 adding 0.2% to 7,445.72. The Dow Jones Industrial Average climbed 0.6% to 50,285.66, while the technology-heavy Nasdaq composite edged up 0.1% to 26,293.10.
Shares of Nvidia fell 1.8% despite better-than-expected quarterly results on the artificial intelligence frenzy, with some analysts believing its share price still as undervalued.
Southwest Airlines gained 2.7% and American Airlines climbed 4.9% as oil prices eased before bouncing back. Ralph Lauren surged 13.9% following stronger-than-expected quarterly results.
In other dealings early Friday, the yield on the US 10-year Treasury was at 4.56%, down from more than 4.67% earlier in the week, when higher global inflationary pressures stemming from the war fuelled a surge in bond yields.
The US dollar rose to 159.02 Japanese yen from 158.98 yen. The euro was trading at USD 1.1613, down from USD 1.1619. (AP)
