Asian Stocks Rise as Oil Prices Jump on Hormuz Tensions

Asian stocks edged higher on Friday, August 7, as investors seemingly shrugged off geopolitical risks. The MSCI Asia Pacific Index rose 0.2%, with South Korean tech shares leading gains.

The Kospi advanced 1.3% in early trade but later fell to a modest 0.059%. Japan's Topix rose 0.31%, while the broader Nikkei 225 slipped 0.85%. Hang Seng futures were little changed, as was the offshore yuan at 6.7481 per dollar.

Brent crude prices surged more than 1% to $83.45 a barrel, driven by intensifying West Asia tensions and continued uncertainty over efforts to reopen the Strait of Hormuz. West Texas Intermediate followed suit, up 1.1% at $78.17 a barrel.

The rise in energy prices reignited concerns that the Federal Reserve might hold interest rates higher for longer, with the 10-year Treasury yield jumping seven basis points to 4.68%. Meanwhile, the US dollar held its ground after notching its sharpest single-day gain in two weeks.