Oil Price Volatility Drives Mixed Asian Stock Markets

Asian stock markets traded mixed on Monday following a strong week for US shares. The rebound in oil prices contributed to the gains, with benchmark U.S. crude rising 1% to $93.33 a barrel and Brent crude up 1.8% to $106.19 a barrel.

The uncertainty surrounding the Iran conflict is driving oil price volatility, as traders worry about when oil will flow freely from the Middle East again. This includes access through the Strait of Hormuz.

On Wall Street, the S&P 500 added 0.5% to break its three-day losing streak, while the Dow Jones Industrial Average surged 478 points or 0.9%. The Nasdaq composite climbed 0.5% as well.

The rising expectations of high inflation in the US are a concern for economists, potentially leading to a vicious cycle that increases living costs further. This was reflected in the yield on the 10-year Treasury, which briefly jumped to 5.22% last Friday before easing back to 5.15%. The high yields make borrowing more expensive and can harm stock prices.