Asian Stocks Rise as Oil Eases, European Benchmarks Fall
Asian equity markets closed higher on Friday, supported by a slight dip in crude oil prices, while European indexes declined. The S&P 500 posted its second consecutive weekly loss despite a modest intraday gain.
South Korea’s Kospi index jumped 2.7 percent. Japan’s Nikkei rose 1.4 percent. These gains followed a rate hike by the Bank of Japan to its highest level in 31 years. The move aligned with the Federal Reserve’s earlier decision to raise rates for the first time in three years.
European markets moved in the opposite direction. The CAC 40 in Paris fell 1.5 percent. London’s FTSE 100 also dropped 1.5 percent. U.S. investors watched the S&P 500 inch up 0.2 percent. The Dow Jones Industrial Average slipped 0.2 percent. The Nasdaq composite added 0.4 percent.
Oil prices ease from weekly peak
Brent crude settled at $103.87 per barrel, down 0.9 percent. The price had reached nearly $110 early in the week before retreating. It briefly dipped below $102 in overnight trading. According to GN auto markets/energy: crude oil prices, this reduction offers slight relief to consumers facing high fuel costs.
Gasoline prices stand at $4.47 per gallon, up from $3.20 a year ago. Diesel prices hit a record $6.45 per gallon. These figures increase shipping costs for goods ranging from groceries to clothing. The rising energy costs contribute to the persistent inflation that remains well above the 3 percent threshold.
Bond yields pressure equity valuations
The yield on the 10-year Treasury climbed to 5 percent. It had been 4.94 percent late Thursday. This marks the first time the yield topped 5 percent since 2023. Higher yields make borrowing more expensive for governments and businesses. They also reduce the appeal of stocks relative to fixed-income securities.
Economic data suggests inflation remains stubborn. The Federal Reserve indicated it may need to hike rates again this year. This stance keeps upward pressure on Treasury yields. Investors are adjusting their portfolios to reflect the higher cost of capital.
Corporate earnings show mixed signals
Nucor shares fell 6.3 percent after the steel maker issued a profit forecast below analyst expectations. The company cited higher input costs despite increased pricing power in its mills business. General Motors dropped 5.1 percent. Qualcomm declined 5.8 percent. These declines contrasted with gains in the financial technology sector.
Coinbase Global climbed 11.7 percent, the largest gain among S&P 500 stocks. Robinhood Markets rose 9.1 percent. Berkshire Hathaway edged up 0.1 percent after Warren Buffett announced he is stepping down as chairman. The S&P 500 ended the session at 7,650.50, up 12.74 points. The Dow closed at 51,682.64, down 95.40 points. The Nasdaq finished at 26,552.55, adding 104.25 points.
