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Oil Prices, Asian Stocks Gain After Tech Rally On Wall Street

Stocks rose modestly in Asia and oil prices also rose after a tech-led rally on Wall Street. Trade was weak as many regional markets, including those in China, were closed for public holidays.

Tokyo’s Nikkei 225 index rose 0.2% to 27,787.98 and Seoul’s Kospi was up 0.1% to 2,759.20. The S&P/ASX 200 was up 0.2% to 7,527.90. India’s Sensex slipped 0.1%.

Russia’s invasion of Ukraine has heightened concerns about rising inflation and the impact on global economic growth. Prices for everything from food to clothing are already rising and the war has added to the volatility of energy prices.

the World Bank downgraded its 2022 growth forecast for Asia-Pacific from 5.4% to 5%, partly due to disruptions in raw material supplies, financial strains and higher prices. This follows a rebound to 7.2% growth in 2021 after many economies slowed with the outbreak of the pandemic.

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The report forecasts slower growth and rising poverty in Asia-Pacific this year as “multiple shocks” worsen problems for people and businesses.

Oil prices are hovering around $100 a barrel, an emergency for many countries dependent on oil and gas imports.

U.S. crude oil rose 61 cents to $103.89 a barrel in electronic trading on the New York Stock Exchange early Tuesday. Brent crude rose 60 cents to $108.13 a barrel.

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U.S. crude prices rose 4% on Monday and Brent crude, the standard for international prices, rose 3%.

In New York on Monday, the S&P 500 was up 0.8% to 4,582.64, the Dow Jones Industrial Average was up 0.3% to 34,921.88 and the tech-heavy Nasdaq was up 1.9% to 14,532.55.

Smaller company shares also rose. The Russell 200 Index was up 0.2% to 2,095.44.

Twitter rose 27.1% for the biggest gain in the S&P 500 after the company announced that Tesla’s Elon Musk had taken a 9.2% stake on the social media platform. In recent weeks, Musk has publicly questioned the company’s commitment to freedom of expression. The gains were a key factor in boosting the broader communications sector and keeping the S&P 500 in the green, although slightly less than half of the companies in the index fell.

Big tech stocks worked hard on Monday, offsetting losses elsewhere. Such companies have expensive stock values ​​and tend to carry more weight when it comes to driving the market up or down. Apple rose 2.4% and Microsoft rose 1.8%.

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Investors keep watching conflict in Ukrainewhere Russia could face even tougher economic sanctions after details emerged of alleged premeditated killings of civilians.

European Union foreign policy chief Josep Borrell joined the growing chorus of international criticism of the alleged atrocities, saying the bloc of 27 countries “will urgently work on further sanctions against Russia”.

The 10-year Treasury yield was 2.40% early Tuesday, close to Monday’s close of 2.41%.

Bond yields have risen all year as Wall Street prepares for higher interest rates. The Federal Reserve has already raised its key federal funds rate once, the first such hike since 2018. The central bank is expected to raise interest rates further throughout 2022 to counteract the impact of rising inflation.

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The Fed will release minutes from its last meeting on Wednesday.

In forex trading, the US dollar rose to 122.91 Japanese yen from 122.79 yen. The euro climbed from $1.0976 to $1.0985.

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https://www.ksat.com/business/2022/04/05/oil-prices-asian-shares-gain-after-tech-rally-on-wall-st/ Oil Prices, Asian Stocks Gain After Tech Rally On Wall Street

Andrew Schnitker

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