Asian stock markets are predominantly higher on Thursday, buoyed by positive momentum from Wall Street and a significant rise in crude oil prices, which have reached their highest levels in eleven years. Federal Reserve Chair Jerome Powell’s indication of a likely interest rate hike later this month, despite geopolitical uncertainties from the Russia-Ukraine conflict, has also contributed to market optimism. The Australian market, in particular, is seeing notable gains, with the S&P/ASX 200 climbing 0.72% as energy stocks surge.

The rise in crude oil prices is impacting various sectors, particularly energy and materials, with Australian miners like BHP Group and Fortescue Metals reporting gains of over 3%. Additionally, the Australian services sector showed signs of recovery, with a PMI score indicating expansion, further supporting market sentiment. Meanwhile, Japan’s Nikkei 225 is also rebounding, reflecting a broader regional recovery despite ongoing COVID-19 concerns.

Investors should closely monitor the implications of rising oil prices and potential interest rate hikes on sector performance, particularly in energy and commodities, as these factors could influence market volatility in the coming weeks.

StoxFeed tracks this as a market signal: Oil prices are responding to OPEC decisions and geopolitical tensions

Source: nasdaq.com