Asian Stocks Rise as Oil Retreat Eases Market Pressure

Asian stock markets posted broad gains at the start of Tuesday’s trading session, drawing support from robust performance across major U.S. indices on Monday.

Australia’s S&P/ASX 200 index rose 0.2% to 8748.20 points. South Korea’s KOSPI surged 1.6%, closing at 7120.25 points. Hong Kong’s Hang Seng index climbed approximately 0.6% to 25185.26 points. China’s Shanghai Composite index advanced 0.4%, reaching 3964.45 points. Japan’s stock exchange remained closed Tuesday due to a national holiday extending through Wednesday; trading will resume Thursday.

Oil Price Retreat Eases Bond Market Pressure

U.S. benchmark West Texas Intermediate crude rose 0.43% to $96.19 per barrel during Tuesday’s Asian session. Global benchmark Brent crude gained 0.65%, reaching $100.99 per barrel. Despite this intraday increase, oil prices have retreated significantly over the past week — helping ease pressure on bond markets.

The yield on the U.S. 10-year Treasury note fell to 4.95% on Monday, down from 5.01% at Friday’s close. That followed a brief breach above 5% — the first time since 2023 — earlier last week.

U.S. Equity Gains Fuel Regional Momentum

Monday’s U.S. market strength underpinned the Asian rally. The S&P 500 jumped 1.5%, leaving it just 0.4% below its all-time high set last month. The Dow Jones Industrial Average rose 366 points, or 0.7%. The Nasdaq Composite surged 2.3% to a record high, driven by gains among semiconductor manufacturers and other artificial intelligence-linked companies.

Oil Prices Remain Elevated but Below Recent Peaks

Current oil prices remain substantially higher than their July level of around $72 per barrel. However, they are well below last week’s peak of approximately $110 per barrel.

While some oil tankers have successfully transited the Strait of Hormuz en route to global customers, volumes passing through remain far below levels needed to meet customer demand.

Yen Volatility Draws Market Focus

Currency markets focused on the Japanese yen Monday following a sharp 2% decline last week, which triggered speculation about potential intervention by Tokyo authorities. Investors are now assessing interest rate outlooks after a wave of hikes from major central banks last week.