Asian markets traded higher on Friday, tracking gains on Wall Street as investors looked beyond the recent technology sell-off. US stock futures were largely steady after the S&P 500 and Nasdaq Composite ended their three-session losing streak. The Dow Jones Industrial Average led the advance, rising more than 500 points, or about 1.1%, while the S&P 500 gained 0.3% and the Nasdaq Composite edged up 0.1%.
In Asia, Japan's Nikkei 225 climbed 1.30% to 65,261.50, while South Korea's Kospi advanced 1.19% to 5,620.35. Australia's S&P/ASX 200 rose 1.01% to 8,807.70. Hong Kong's Hang Seng Index and China's Shanghai Composite were unchanged. The gains followed a sell-off in technology stocks earlier in the week, driven by concerns over higher US interest rates and the cost of financing artificial intelligence investments.
Oil Prices
Crude oil prices remained elevated, with Brent trading near $106 a barrel, up almost 1% for the week. West Texas Intermediate hovered around $97, extending its outperformance against the global benchmark as lower shipping costs for US crude supported demand.
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Uncertainty over the restoration of oil shipments through the Persian Gulf has increased after US Central Command confirmed on Thursday that an Iranian projectile struck a container ship that sank in the Strait of Hormuz earlier this week. The incident has added to concerns about the security of a key route for global energy supplies.
WTI has gained more than Brent this week, narrowing the price difference between the two benchmarks. The cost of transporting a typical shipment of US crude from the Gulf Coast to Rotterdam has fallen about 12% over the past week, according to data from the Baltic Exchange in London.
Market Focus
Investors remain focused on the outlook for US monetary policy after stronger-than-expected inflation data raised the prospect of further Federal Reserve rate increases. US consumer prices rose 0.6% in September from the previous month and 3.7% from a year earlier, with higher fuel costs contributing to the increase. Underlying inflation also exceeded expectations.
The prospect of tighter monetary policy has weighed on technology shares, as investors assess whether higher borrowing costs could constrain spending on artificial intelligence infrastructure. The combination of persistent inflation, elevated energy prices and uncertainty over interest rates remains a key consideration for global markets.
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