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 close. Japan’s Nikkei 225 surged 1.1% to 70,683.98, reclaiming the 70,000 mark for the first time since early July. South Korea’s Kospi, however, slipped 0.9% to 6,941.39, reflecting volatility in technology-related stocks. Japanese chip equipment maker Advantest rose 3.9%, while SoftBank Group dropped 3.1% after its CEO warned about risks tied to artificial intelligence. Samsung Electronics and SK Hynix also declined, falling 1.5% and 3.7%, respectively.

Hong Kong’s Hang Seng climbed 0.8% to 24,234.19, while Australia’s S&P/ASX 200 added 0.6% to 8,735.70. Taiwan’s Taiex and India’s Sensex each edged up slightly. Mainland China’s markets were closed for a holiday. On Monday, Wall Street’s S&P 500 rose 0.7% near its record high, with the Dow Jones gaining 0.2% and the Nasdaq reaching an all-time close after a 1.1% jump. Tech giants Nvidia and Broadcom led the gains, each advancing 2.1%.

Oil prices fell early Tuesday, with Brent crude dropping 0.8% to $99.48 per barrel and U.S. crude losing 1.1% to $88.46. Analysts noted easing upward pressure on oil prices due to improved flows through the Strait of Hormuz and Saudi Arabia’s key pipeline, though tensions in the Middle East remain a concern. ING strategists Warren Patterson and Ewa Manthey cautioned that supply disruptions could keep prices elevated.

In the bond market, the 10-year U.S. Treasury yield climbed to around 5.30%, nearing multi-decade highs. The U.S. dollar strengthened against the yen, rising to 158.15, while the euro dipped to $1.1209. Investors are seeking higher returns amid rising inflation and U.S. national debt surpassing $40 trillion.