Asian stocks traded mixed Monday as oil prices moved higher after a decline last week helped U.S. shares finish their first positive week in three.
Japan’s benchmark Nikkei 225 was nearly unchanged, slipping less than 0.1% to 66,333.53.
Australia’s S&P/ASX 200 gained 0.3% to 8,688.60, while South Korea’s Kospi fell 2.3% to 6,916.30. Hong Kong’s Hang Seng rose 0.7% to 24,684.09, while the Shanghai Composite declined 1.7% to 3,820.82.
In energy trading, U.S. benchmark crude rose 1% to $93.33 a barrel, while Brent crude, the international benchmark, climbed 1.8% to $106.19 a barrel.
Brent had briefly fallen to the $97 range last week. Oil prices remain volatile amid uncertainty over when the war with Iran will allow oil supplies from the Middle East to move more freely, including through the Strait of Hormuz.
On Wall Street, the S&P 500 gained 0.5%, ending a three-day decline marked by sharp swings as bond yields increased. The Dow Jones Industrial Average rose 478 points, or 0.9%, while the Nasdaq composite added 0.5%.
Rising expectations of higher U.S. inflation weighed on markets last week. Investors are concerned that persistent inflation expectations could influence economic behavior and contribute to further increases in living costs.
The yield on the 10-year U.S. Treasury note briefly rose to 5.22% Friday from 5.18% late Thursday, approaching its highest level since 2007. Higher yields can slow economic activity by increasing borrowing costs and can also reduce the appeal of stocks and other investments.
The 10-year yield has risen sharply since the start of the war with Iran, when it stood at 3.97%. However, yields eased later Friday as oil prices declined, with the 10-year yield falling back to 5.15%. The move helped U.S. stocks recover.
The S&P 500 rose 39.28 points to 7,743.41. The Dow gained 478.64 points to 51,828.62, while the Nasdaq composite advanced 129.34 points to 27,068.72.
In Asian currency trading Monday, the U.S. dollar rose to 157.76 Japanese yen from 157.19 yen. The euro was trading at $1.1392, little changed from $1.1393.