Asian Shares Mixed as Oil Prices Climb; US Stocks End Winning Week
Investors looked past a dip in oil prices for a moment, allowing U.S. stocks to close their first winning week in three, while Asian markets traded with mixed results.
Asian shares traded mixed on Monday, with markets reacting to a brief cooldown in oil prices that helped U.S. stocks end their first winning week in three.
Japan's Nikkei 225 index saw little change, inching down less than 0.1% to 66,333.53. Australia's S&P/ASX 200 gained 0.3% to 8,688.60, while South Korea's Kospi dipped 2.3% to 6,916.30. In Hong Kong, the Hang Seng rose 0.7% to 24,684.09, contrasting with a 1.7% loss for the Shanghai Composite, which fell to 3,820.82.
Energy markets saw benchmark U.S. crude oil gain 1% to $93.33 a barrel, and Brent crude, the international standard, rose 1.8% to $106.19 a barrel. Last week, Brent oil had briefly fallen to the $97 level. The volatility in oil prices is attributed to uncertainty surrounding the impact of the war with Iran on oil flow from the Middle East, including access to the Strait of Hormuz.
On Wall Street last week, the S&P 500 added 0.5%, breaking a three-day losing streak. The Dow Jones Industrial Average climbed 478 points, or 0.9%, and the Nasdaq composite gained 0.5%. These gains came despite concerns over rising inflation expectations in the U.S., which could potentially lead to a cycle of escalating costs.
The yield on the 10-year U.S. Treasury note briefly touched 5.22% on Friday, up from 5.18% late Thursday and nearing its highest level since 2007. High yields can slow economic growth by increasing borrowing costs and putting downward pressure on investments like stocks. The 10-year yield had risen significantly since the start of the conflict with Iran, when it stood at 3.97%. However, yields eased later on Friday as oil prices retreated, helping U.S. stocks regain strength.
By the close of trading Friday, the S&P 500 had risen 39.28 points to 7,743.41. The Dow Jones Industrial Average jumped 478.64 points to 51,828.62, and the Nasdaq composite gained 129.34 points to 27,068.72.
In currency trading on Monday, the U.S. dollar strengthened to 157.76 Japanese yen from 157.19 yen. The euro held steady at $1.1392, little changed from $1.1393.