Asian Stocks Surge on Wall Street Rally and Falling Oil Prices
Asian stock markets mostly rose in early Friday trading, benefiting from a rally on Wall Street and declining oil prices. Japan's benchmark Nikkei 225 gained 0.8% to 64,662.11 after the Bank of Japan concluded its two-day monetary policy meeting. In South Korea, the Kospi jumped 2.1% to 6,856.35.
The price drop in Brent crude oil from nearly $110 earlier in the week to $104.11 a barrel also contributed to the market's upward trend. This decline in oil prices pulled down yields in the bond market and removed some pressure on stocks. The yield on the 10-year Treasury fell to 4.93% from 5.01% late Wednesday.
The recent rise in interest rates, however, had a mixed impact on markets. While it built confidence that the Federal Reserve is committed to controlling inflation, higher rates also undercut prices for stocks and other investments. The S&P 500 rose 1.1%, the Dow Jones Industrial Average added 316 points or 0.6%, and the Nasdaq composite climbed 1.7%.