Hong Kong

Worldshares advanced Friday, with Tokyo’s benchmark logging a record high close following modest gains on Wall Street, while oil prices rose in the absence of signs of progress toward ending the Iran war. US futures edged more than 0.3 per cent higher.

In early European trading, Britain’s FTSE 100 was up 0.4 per cent at 10,489.09. France’s CAC 40 gained 0.5 per cent to 8,124.02, while Germany’s DAX climbed 0.7 per cent to 24,779.16. In Asia, Tokyo’s Nikkei 225 rose 2.7 per cent to 63,339.07, besting a record high close just over a week earlier. A report showed inflation hitting a four-year low in April, at 1.4 per cent, despite higher prices for oil and gas due to the war.

South Korea’s Kospi gained 0.4 per cent to 7,847.71. Hong Kong’s Hang Seng picked up 0.9 per cent to 25,606.03, while the Shanghai Composite index climbed 0.9 per cent to 4,112.90. Australia’s S&P/ASX 200 gained 0.4 per cent to 8,657.00. Taiwan’s Taiex closed 2.2 per cent higher.

Oil prices remained elevated over disruptions around the Strait of Hormuz, a critical waterway for oil and gas transit, with shipping activities still well below before the Iran war began in late February. Talks between the US and Iran have dragged on, adding to uncertainty. Brent crude, the international standard, gained 2.8 per cent to $105.48 a barrel. It was trading around $70 per barrel in February before the war’s start.

On Thursday, Republicans in Congress delayed into June planned votes on dismissing legislation that would compel President Donald Trump to withdraw from the war. The House had scheduled a Thursday vote on a war powers resolution brought by Democrats that would rein in Trump’s military campaign. But as it became clear that Republicans would not have the numbers to defeat the bill, GOP leaders declined to hold a vote on it. “Markets are still searching for signs of progress in a potential deal between the US and Iran,” ING commodities strategists Warren Patterson and Ewa Manthey wrote in a note on Friday.

“While there are signs of optimism, uncertainty reigns.” Wall Street gained on Thursday, with the benchmark S&P 500 adding 0.2 per cent and the Dow Jones Industrial Average up 0.6 per cent. The technology-heavy Nasdaq composite edged up 0.1 per cent. Shares of Nvidia fell 1.8 per cent despite better-than-expected quarterly results on the artificial intelligence frenzy, with some analysts believing its share price still is undervalued. Southwest Airlines gained 2.7 per cent and American Airlines climbed 4.9 per cent as oil prices eased before bouncing back. Ralph Lauren surged 13.9 per cent following stronger-than-expected quarterly results.