Asian shares track Wall Street gains and oil prices climb on uncertainty over the Iran war

Asian shares advanced Friday, tracking Wall Street’s modest gains, amid rising oil prices fueled by ongoing uncertainty over the Iran war. Tokyo’s Nikkei 225 surged 2.7% to 63,352.44, while Hong Kong’s Hang Seng climbed 1.2% to 25,685.65. South Korea’s Kospi rose 0.6% to 7,860.59, and Taiwan’s Taiex increased 1.5%, though India’s Sensex gained only 0.2%. Oil prices remained elevated due to disruptions in the Strait of Hormuz, a critical shipping route, with tensions escalating since late February. Brent crude advanced 1.5% to $104.08 per barrel, up from around $70 in February, while U.S. benchmark crude rose 0.9% to $97.25. Analysts at ING noted markets are still awaiting progress in U.S.-Iran negotiations, despite signs of cautious optimism. Wall Street showed modest gains Thursday, with the S&P 500 up 0.2% to 7,445.72 and the Dow Jones Industrial Average rising 0.6% to 50,285.66. The Nasdaq edged up 0.1% to 26,293.10, while Nvidia dropped 1.8% despite strong AI-driven earnings. Southwest Airlines and American Airlines climbed 2.7% and 4.9%, respectively, as oil prices fluctuated. The U.S. 10-year Treasury yield eased to 4.56% from over 4.67% earlier in the week, reflecting reduced inflationary pressures. The U.S. dollar strengthened to 159.02 yen, and the euro dipped to $1.1613. Republicans in Congress delayed votes on legislation to compel President Donald Trump to withdraw from the Iran conflict until June. Inflation in Japan hit a four-year low of 1.4% in April, despite higher oil and gas costs tied to the war. Analysts warned that while yields have fallen, global economic risks persist due to geopolitical tensions and market volatility.