Asian shares are mostly higher, Japan's Nikkei tops 70,000 before BOJ rate hike

Tokyo, Jun 16 (AP) Asian shares mostly gained and Japan’s benchmark Nikkei 225 briefly topped 70,000 for the first time Tuesday before trimming early gains after the Bank of Japan raised its key interest rate to 1 per cent.

The quarter percentage point hike took the benchmark rate to its highest level in three decades.

Japan’s Nikkei 225 rose 0.1 per cent to finish at 69,404.50, while South Korea’s Kospi moved further into record territory, gaining 2.1 per cent to 8,726.60.

The Shanghai Composite fell nearly 0.1 per cent to 4,092.66.

Australia’s S&P/ASX 200 was little changed, rising less than 0.1 per cent to 8,917.70 and Hong Kong’s Hang Seng slipped 1.8 per cent to 24,405.78.

In Taiwan, the Taiex was up 0.9 per cent, while India’s Sensex picked

up 0.5 per cent.

On Monday, stock markets rallied worldwide and oil prices eased after the United States and Iran reached a tentative deal to get the global flow of crude going again. The S&P 500 rose 1.7 per cent and the Dow climbed 0.9 per cent to a record. The Nasdaq composite jumped 3.1 per cent.

Brent crude fell 4.8 per cent on expectations that the agreement might reopen the Strait of Hormuz, where much of Asia gets its oil supply. But some analysts urged caution, noting many issues remain uncertain. Negotiations with Iran are expected to continue over the next 60 days. Even after Hormuz reopens on Friday as expected, it will likely take months for the energy industry to get back to full speed.

Oil prices have declined recently on hopes for an extension of the ceasefire in the war, falling from the USD 100-plus levels they were at a few weeks ago. Before the war, oil was trading at about USD 70 a barrel.

On Tuesday, benchmark US crude was down 15 cents at USD 80.60 a barrel. Brent crude, the international standard, declined 39 cents to USD 82.78 a barrel.

In share trading on Monday, US stocks related to the artificial-intelligence industry soared. Micron Technology rallied 10.8 per cent, and Advanced Micro Devices rose 7 per cent.

NVIDIA’s climb of 3.5 per cent was the strongest force pushing the S&P 500 upward because the AI chip company is Wall Street’s most valuable company, giving it more weight on the index than any other. SpaceX, Elon Musk’s rocket company that also owns the AI company xAI, rose 19.6 per cent in its second day of trading on Wall Street.

In the bond market, Treasury yields eased on hopes that lower oil prices will remove pressure on central banks to raise interest rates. The yield on the 10-year Treasury slipped to 4.47 per cent from 4.48 per cent on late Friday.

In currency trading early Tuesday, the US dollar inched down to 160.22 Japanese yen from 160.33 yen. The euro cost USD 1.1586, down from USD 1.1592. (AP) SKS SKS