Asian Markets Mixed as Oil Prices Dip and Wall Street Gains
Asian markets showed mixed performance on Tuesday, with most indices gaining ground following Wall Street’s strong finish. Japan’s Nikkei 225 surged 1.1% to 70,683.98, marking its return above 70,000 since early July. In contrast, South Korea’s Kospi dropped 0.9% to 6,941.39, reflecting volatility in technology-related stocks. Advantest, a Japanese chip testing equipment manufacturer, rose 3.9%, while SoftBank Group fell 3.1% after its CEO warned about risks tied to advanced technologies. Samsung Electronics and SK Hynix also declined, shedding 1.5% and 3.7%, respectively.
Hong Kong’s Hang Seng climbed 0.8% to 24,234.19, and Australia’s S&P/ASX 200 advanced 0.6% to 8,735.70. Taiwan’s Taiex and India’s Sensex saw modest gains of 0.2% and 0.6%, respectively. Mainland Chinese markets were closed for a holiday.
On Monday, U.S. stocks rallied, with the S&P 500 adding 0.7% to near its record high. The Dow Jones Industrial Average gained 0.2%, and the Nasdaq composite rose 1.1% to an all-time close. Technology giants like Nvidia and Broadcom led the gains, each rising 2.1%. Analysts noted that strong earnings expectations have offset challenges from surging oil prices and bond yields.
Oil prices dipped early Tuesday, with Brent crude falling 0.8% to $99.48 per barrel and U.S. benchmark crude losing 1.1% to $88.46. Analysts attributed the decline to easing concerns over supply disruptions in the Middle East, though tensions between the U.S. and Iran remain high. The 10-year U.S. Treasury yield hovered near multi-decade highs at around 5.30%, reflecting inflationary pressures and rising U.S. national debt. The U.S. dollar strengthened against the yen and euro.