Asian stocks advanced on Tuesday as an apparent calm in the global oil market helped ease concerns around inflation and input costs.
Gold was little changed at $4,140 an ounce in Asian trade as a firmer dollar and elevated Treasury yields offset support from reduced chances of an October rate hike by the Federal Reserve.
Brent crude futures dipped below $100 a barrel in choppy trade after reports suggested that Middle East crude exports are recovering towards prewar levels despite continued risks to shipping.
As oil flows from the Middle East recover after months of disruptions linked to the Iran war, Saudi oil producer Saudi Aramco unexpectedly lowered its November official selling prices for crude oil bound for Asia by the widest margin in six years.
Markets in mainland China were closed for the National Day holiday. Hong Kong’s Hang Seng index jumped 1.0% to 24,280.56, helped by a technology-led rally in global markets. Pharmaceutical stocks also advanced, helping offset selling pressure in the real estate sector.
Japanese markets rose sharply as a strong auction of 10-year Japanese government bonds helped ease investor concerns over rising yields.
The benchmark 10-year yield hit 3.115%, matching its highest level since 1996, after long-term interest rates surged on September 1, hitting 3% for the first time in about 30 years.
The Nikkei average rallied 1.05% to 70,683.98 while the broader Topix index closed 0.92% higher at 4,183.56.
The yen drifted lower as investors braced for the release of the Federal Open Market Committee (FOMC) meeting minutes and speeches from influential Fed officials.
Earlier, Bank of Japan (BOJ) governor Kazuo Ueda said in a speech to an annual meeting of securities firms that economic and price developments were moving in line with the central bank’s baseline scenario.
Seoul stocks ended notably lower as technology stocks came under selling pressure on concerns over elevated bond yields. The Kospi index fell 0.89% to 6,941.39, giving up early gains. South Korean electronics maker Samsung Electronics declined 1.5% and its South Korean chip-making rival SK Hynix tumbled 3.7%.
Australian markets rose for a third straight session after the Nasdaq Composite hit a record overnight, led by strength in artificial intelligence and technology stocks.
The benchmark S&P/ASX 200 surged 0.57% to 8,735.70, led by banks and mining stocks. The broader All Ordinaries index settled 0.5% higher at 8,903.50.
Investors shrugged off the results of a survey, which showed Australia’s consumer confidence deteriorated sharply in October following the Reserve Bank of Australia’s latest interest rate hike and amid ongoing pressure from higher fuel prices and mortgage rates.
