Asian stocks climb as sliding oil prices buoy sentiment
SPY•Asian stocks rose as falling oil prices eased inflation concerns, while investors awaited US CPI data. Traders priced in an 84% chance of a Federal Reserve rate hike next month, up from 74% a week earlier.
1. Stocks gain as oil falls
Asian stocks rose on Tuesday after oil prices fell following US President Donald Trump’s statement that he planned to hold off on new military strikes against Iran. Brent crude was down 1% at $91.56 a barrel, its lowest level since early September. South Korea’s KOSPI rose more than 5%, Japan’s Nikkei gained about 3%, and MSCI’s broadest Asia-Pacific share index was up 1.5%.
2. Markets watch inflation
Lower oil prices eased inflation worries after last week’s stock rout. Investors awaited US inflation data, with economists polled by Reuters expecting headline consumer prices to rise 0.3% in October and core prices to increase 0.2%. Traders priced in an 84% chance of a rate hike next month, compared with 74% a week earlier. The US two-year Treasury yield was up 1.4 basis points at 4.56%.
3. Nvidia remains in focus
Nvidia shares fell 4.2% after the company said its board was probing whether CEO Jensen Huang had been the target of a foreign intelligence operation. The company is due to report earnings next week. Earnings from tech companies including CoreWeave are also due this week, as investors assess the cost of the AI buildout.
