Asian shares advanced on Friday, tracking modest gains on Wall Street, while oil prices climbed as efforts to end the Iran war yielded limited results. Tokyo's Nikkei 225 surged 2.7% to 63,352.44, supported by a report showing inflation in Japan hit a four-year low of 1.4% in April, despite higher oil and gas prices due to the conflict.
Regional Market Performance
South Korea's Kospi gained 0.6% to 7,860.59, while Hong Kong's Hang Seng rose 1.2% to 25,685.65. 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 traded 1.5% higher, and India's Sensex edged up 0.2%.
Oil Prices and Geopolitical Uncertainty
Oil prices remained elevated due to disruptions around the Strait of Hormuz, a critical waterway for oil and gas transit. Shipping activities are still well below levels before the Iran war began in late February. Talks between the U.S. and Iran have dragged on, adding to uncertainty. Republicans in Congress struggled Thursday to find votes to dismiss legislation compelling President Donald Trump to withdraw from the war, delaying planned votes into June.
Brent crude, the international standard, gained 1.5% to $104.08 a barrel, up from around $70 before the war. Benchmark U.S. crude traded 0.9% higher at $97.25 a barrel. ING commodities strategists noted, "Markets are still searching for signs of progress in a potential deal between the US and Iran. While there are signs of optimism, uncertainty reigns."
Wall Street Overview
On Thursday, the S&P 500 added 0.2% to 7,445.72, the Dow Jones Industrial Average climbed 0.6% to 50,285.66, and the Nasdaq composite edged up 0.1% to 26,293.10. Nvidia shares fell 1.8% despite better-than-expected quarterly results, as some analysts believe its share price remains 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.
Bond Yields and Currency Markets
The yield on the U.S. 10-year Treasury stood at 4.56%, down from over 4.67% earlier in the week, when higher global inflationary pressures from the war fueled a surge. The U.S. dollar rose to 159.02 Japanese yen from 158.98 yen, while the euro traded at $1.1613, down from $1.1619.
