Asian shares climb and oil prices gain after a report Israel may attack Iran's nuclear facilities

Japan Today

21-05-2025

Currency traders work near a screen showing the Korea Composite Stock Price Index (KOSPI), top center left, and the foreign exchange rate between U.S. dollar and South Korean won, top center, at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Wednesday, May 21, 2025. (AP Photo/Ahn Young-joon)
By ELAINE KURTENBACH
Shares rose in Asia on Wednesday while oil prices jumped more than 1% following a report that Israel may be planning an attack on Iranian nuclear facilities.
U.S. futures were lower.
A CNN report cited unnamed intelligence officials saying Israel may be preparing for an attack on Iranian nuclear facilities. Oil prices tend to rise with conflicts that might disrupt oil supplies, and they jumped early Wednesday but lost some of those gains by midday.
U.S. benchmark crude oil gained 79 cents to $62.82 per barrel while Brent crude, the international standard, rose 77 cents to $66.15 per barrel.
In talks on the nuclear issue, Iranian officials have warned they could pursue a nuclear weapon with their stockpile of uranium enriched to near weapons-grade levels. U.S. President Donald Trump has repeatedly threatened to unleash airstrikes targeting Iran's program if a deal isn't reached.
In share trading, Tokyo's benchmark Nikkei 225 fell 0.6% to 37,313.62. Gains have been limited by the continued worries over higher tariffs Trump has imposed on many U.S. trading partners since taking office. Earlier this week, Japanese officials said they were insisting all of his higher tariffs on imports from Japan be removed as part of talks with Washington.
Japan's exports have slowed due to the tariffs, the government reported Wednesday. Exports to the U.S., Japan's largest single trading partner, fell almost 2% year-on-year in April and the annual rate of growth in its global exports slowed to 2% from 4% in March, preliminary customs data showed.
In a step that further weakened Prime Minister Shigeru Ishiba's faltering administration, the agriculture minister, Taku Eto, resigned after an outcry over comments he made about not having to buy rice, but getting it for free, at a time when shortfalls in supply have pushed prices of the staple grain sharply higher.
In Hong Kong, the Hang Seng picked up 0.4% to 23,785.58, while the Shanghai Composite index edged 0.2% higher to 3,387.00.
Australia's S&P/ASX 200 surged 0.5% to 8,386.00, while the Kospi in South Korea climbed 0.9%, to 2,625.80.
Taiwan's Taiex advanced 1.3% and India's Sensex gained 0.7%.
The future for the S&P 500 was down 0.5% early Wednesday, while that for the Dow Jones Industrial Average lost 0.4%.
On Tuesday, the S&P 500 lost 0.4% for its first drop in seven days. The Dow fell 0.3% and the Nasdaq composite fell 0.4%.
Treasury yields and the value of the U.S. dollar held relatively stable following a brief jolt Monday morning after Moody's Ratings said the U.S. government no longer deserves a top-tier credit rating because of worries about its spiraling debt.
U.S. government debt could be set to get even bigger with Washington debating more cuts to taxes.
Stocks of companies in the travel industry led the way lower on doubts about how much U.S. households will be able to spend on summer vacations.
Airbnb dropped 3.3%, Norwegian Cruise Line fell 3.9% and United Airlines lost 2.9%. Viking Holdings fell 5% even though the company, which offers river cruises and other trips, reported stronger results than analysts expected for the latest quarter.
Home Depot slipped 0.6% after reporting a profit for the start of the year that came up just short of analysts' expectations, though its revenue topped forecasts. The home-improvement retailer also said it's sticking with its forecasts for profit and sales growth over the full year.
That's counter to a growing number of companies, which have recently said tariffs and uncertainty about the economy are making it difficult to guess what the upcoming year will bring.
Trump has delayed or rolled many of the stiff tariffs he has imposed as he tries to compel companies to move manufacturing to the United States. Investors are hopeful that Trump will eventually lower his tariffs after reaching trade deals with other countries, but that's not a certainty.
On the winning side of Wall Street was D-Wave Quantum, which jumped 25.9% after releasing its latest quantum computing system. The company says it can solve complex problems beyond the reach of classical computers.
Target and Home Depot rival Lowe's will report their latest results on Wednesday.
In the bond market, the yield on the 10-year Treasury edged up to 4.47% from 4.46% late Monday. The two-year yield, which more closely tracks expectations for action by the Federal Reserve, edged down to 3.96% from 3.97%.
In currency dealings, the U.S. dollar fell to 143.63 Japanese yen from 144.51 yen. The euro rose to $1.1344 from $1.1284.
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