Sydney: Asian equities advanced on Thursday after semiconductor stocks recovered from recent selling pressure. Gains were limited by higher oil prices following renewed conflict in the Gulf region, which raised inflation concerns and pressured bond markets.
Oil prices increased for a third consecutive session after U.S. President Donald Trump stated that the interim agreement with Iran had ended. American forces conducted additional strikes on Iran for a second day to secure the Strait of Hormuz. Trump later indicated he did not anticipate a full-scale war, easing some market worries.
Brent crude futures gained 0.8 percent to $78.65 per barrel and rose 9 percent for the week, surpassing $80 for the first time since June 22. This development weighed on global bonds and increased expectations that the Federal Reserve may raise interest rates this year, with futures now pricing in 38 basis points of tightening.
Wall Street initially declined but recovered later, with the Nasdaq posting a modest 0.2 percent gain. Nvidia shares rose 3.6 percent after reports that China may permit limited purchases of its H200 chips by major AI companies.
MSCI’s Asia-Pacific index excluding Japan increased 0.8 percent, while Japan’s Nikkei climbed 2.3 percent. South Korea’s KOSPI surged 3.8 percent, supported by gains in Samsung and SK Hynix.
Wall Street futures traded flat in Asia, and European stock futures rose 0.9 percent. Analysts noted markets still expect eventual de-escalation in the Iran conflict, though conditions remain uncertain.
Federal Reserve minutes revealed concerns over rising inflation, with some officials favoring higher borrowing costs. Bond yields increased across major markets, including Japan, Australia, and the United States. The dollar eased slightly against the yen.
