In early Asian trade, the Kospi led regional gainers, climbing 2.32%, while the Nikkei added 0.75%. The Topix bucked the trend, slipping 0.32%. Hang Seng futures pointed to a 0.4% rise.
The gains in stock indices follow the S&P 500’s 1.1% jump on Thursday, which was its strongest single-day rise since early August. The Nasdaq 100 outperformed with a 1.7% advance, while chipmaker stocks surged 3.1% as US markets clawed back losses sparked by the Federal Reserve’s first rate increase since 2023.
Meanwhile in India, the GIFT Nifty indicated a muted start for the stock exchange in the green at over 23,300 points.
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The rally traced back to oil as Brent settled below $105 a barrel at about $104 a barrel and US crude fell for a third straight session on Friday, dropping to $101.15 a barrel.
This came about as supply fears cooled and markets shifted attention to diplomatic efforts that could shape the course of the US-Iran conflict.
Saudi Arabia moved to reassure markets, working to restore roughly half the capacity of its East-West pipeline within days of a drone strike that had forced its closure. Separately, China urged Iran to help restrain Yemen’s Houthi militants, a step that could ease shipping disruptions around the Bab el-Mandeb strait, a critical corridor for global energy flows.
The retreat in oil filtered through to bonds as US Treasuries rallied across maturities, with the 10-year yield dropping nine basis points to 4.93%, pulling back from a peak of 5.02% touched on Wednesday in the wake of the Fed’s move.Softer energy prices could ease pressure on consumer prices, giving central banks more room to gauge the effects of tighter policy according to Bloomberg
Attention now turns to the yen, trading at 155.95 per dollar, with the currency holding steady as traders seemed to await the Bank of Japan’s rate decision.
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A Bloomberg report said that policymakers were expected to lift the benchmark rate to 1.25% from 1%.
Investor caution on whether oil’s decline holds also remains in focus, given ongoing uncertainty over the US-Iran conflict and the developments surrounding it.
