- Oil prices are rising, while futures are moving higher after a rally in the U.S. on concerns about supply disruption following tensions between Iran and the United States.
- Nikkei 225, Kospi and Taiex rose on average, while Kioxia, SK Hynix, Samsung Electronics and TSMC also moved higher.
- Brent was up to nearly $78; in the meantime, the dollar was strengthening as oil prices fell after a report that a U.S. strike on Iran could be imminent.
Asian oil prices are rising, with the futures market increasing after a rally in the U.S. on concerns that supply disruption could occur following tensions between Iran and the United States. Associated Press reported that the U.S. could be preparing an oil supply disruption in the wake of escalating tensions with Iran.
In the region, major stock indexes were higher as investors bet on AI-related companies, with Tokyo, Seoul and Taiwan all posting gains. Japan’s Nikkei 225 rose 3.3% to 66,068.24; Kioxia added 6.3% and Advantest gained 6.9%. South Korea’s Kospi rose 4.4% to 6,642.02, with SK Hynix up 6.7% and Samsung Electronics up 4.1%. Taiwan’s Taiex climbed 3.1%, while TSMC was up 3.5%.
On the oil market, Brent, the international benchmark, and AP’s materials showed a 1.2% drop to $78.43 per barrel at the time of writing. However, the report noted that Brent was still up 5.3% for the week after the possibility of further escalation between Iran and the United States. The report also said Iran’s Oman route had been disrupted, but that the U.S. could still be preparing a strike on Iran. The Guardian reported that oil prices were falling for a second day in a row: Nikkei was down 3.6% and Kospi was down 4.1%. The reason for the decline, according to the report, was that Brent fell below $80 per barrel, while at the same time publication data showed a 0.5% increase to 78.95 per barrel.
In the U.S., as AP reported, the S&P 500 rose 1.8% and the Nasdaq Composite gained 2.6% while the Dow Jones Industrial Average climbed 1.7%. AP also cited strong gains among companies: Palantir Technologies, Caterpillar and other companies rose, while chipmakers fell; Nvidia (+2.6%), Broadcom (+6.6%) and Micron Technology (+7.6%) rose.
AP also reported that in the region, the dollar weakened against the yen: it was down to 157.48 yen per dollar from 157.74, while the euro fell to $1.1540 from $1.1532.