Asian Markets Edge Higher as Chip Stocks Gain, Oil Prices Ease
Asian stock markets started the week on a positive note, helped by strong demand linked to artificial intelligence and gains in semiconductor companies. At the same time, oil prices eased slightly as expectations of higher Saudi Arabian supplies offset concerns following a Houthi attack on Riyadh.Trading remained relatively thin because Japan's markets were closed for the Silver Week holiday. The dollar was steady at around 157 yen, while investors remained cautious about possible intervention by Japanese authorities to support the yen.
South Korea Leads Gains
Japan's Nikkei remained closed, although Nikkei futures gained around 0.5%. South Korea's technology-heavy index rose 1.1%, while MSCI's broad Asia-Pacific index excluding Japan advanced 0.3%.US stock futures also moved higher, with S&P 500 futures up 0.3% and Nasdaq futures gaining 0.4%. European markets were also largely positive in early trading.
Bond Yields Keep Markets Nervous
Global bond markets remained under pressure following a sharp rise in US Treasury yields. The US two-year yield climbed to 4.7604%, its highest level since mid-2024, after rising 36 basis points over the past two weeks.Markets are now pricing in a greater possibility of another Federal Reserve rate hike. Analysts at Bank of America said strong consumer spending could keep inflation above the desired level and maintain pressure on the US central bank.
Other major central banks, including those in the UK, Japan, Australia and New Zealand, are also expected to maintain a relatively tight monetary policy through the end of the year.
Oil Prices Stay Above $100
Oil remained above the $100-a-barrel mark despite easing slightly. Brent crude fell 0.2% to $103.68, while US crude declined 0.3% to $100.02.Oil markets remain sensitive to developments involving Iran, the United States, Saudi Arabia and key shipping routes. Reports that Saudi Arabia could restart some oil flows through its East-West pipeline provided some relief to the market.Analysts warned that prolonged disruption could put pressure on global oil and refined-product inventories in the coming weeks.
Gold Slips
Higher bond yields also weighed on gold, which does not provide interest income. Gold prices declined 0.2% to around $4,370 an ounce.Overall, investors remain focused on interest-rate decisions, oil supply disruptions and geopolitical developments as major drivers for global markets this week.
