Asian Stocks Rally on Wall Street Gains and Falling Oil
Asian equities climbed Friday as Brent crude retreated from $110, following a strong US market session.
Asian shares rose in early Friday trading. The Nikkei 225 gained 0.8% to 64,662.11. The advance followed a recovery in US markets. Falling oil prices reduced pressure on global investors.
South Korea’s Kospi jumped 2.1% to 6,856.35. Australia’s S&P/ASX 200 edged up 0.1% to 8,738.50. The Hang Seng index in Hong Kong rose 0.8% to 24,766.66. The Shanghai Composite added 0.8% to 3,905.34.
Crude Oil Retreat Supports Equities
Brent crude slid 0.68% to $104.11 a barrel. US benchmark crude dropped 0.54% to $101.36 a barrel. Prices fell from the nearly $110 level reached earlier in the week. This decline helped pull bond yields lower.
The 10-year Treasury yield fell to 4.93% from 5.01%. Lower yields removed some headwinds for stocks. This trend was reported by GN auto markets/energy: crude oil prices. The drop in energy costs improved sentiment in Asian trading.
US Markets Rebound After Fed Hike
The S&P 500 jumped 1.1% on Thursday. This was its second rise in the last nine days. The Dow Jones Industrial Average added 316.14 points to 51,778.04. The Nasdaq composite climbed 1.7% to 26,418.30.
The Federal Reserve raised the federal funds rate by 25 basis points. This was the first hike in more than three years. Officials signaled a possible additional increase this year. The move aimed to control high inflation in the US.
Currency Moves Reflect Rate Changes
The U.S. dollar strengthened against the yen. It rose to 156.15 yen from 155.95 yen. The euro remained unchanged at $1.1480. These shifts reflect the impact of the recent rate decision.
