Asian shares rise on strong earnings as Brent nears $110

what happened

Asian shares moved higher on Wednesday, with MSCI's index of Asia-Pacific stocks excluding Japan up 1.5%, South Korean equities gaining 4% and Japan's Nikkei 225 adding 1.3%, Reuters reported. The advance followed a Wall Street session in which the S&P 500 rose 0.3% on solid corporate profits; according to LSEG data, 86% of the index's companies that have reported so far topped profit forecasts.

Brent crude climbed 1.1% to $110.03 a barrel after reaching a five-month high on Tuesday. Traders are weighing a meeting between Iran's president and the head of Pakistan's army, a key go-between for Washington and Tehran, against continued Houthi strikes on Saudi facilities and reports of ship attacks in the Gulf. Prices had slipped on unconfirmed talk of renewed peace efforts, then recovered once those reports were denied.

In France, equities fell as worries grew over the government's plan to contain recent unrest. Prime Minister Sebastien Lecornu promised a large deployment of police and troops ahead of Saturday's protests. The yield on the French 10-year bond rose to 4.94%. The yen weakened to 158.33 per dollar after Japan's September exports jumped 16.7% from a year earlier, below expectations. Bitcoin traded near $82,989.

why it matters

For markets the picture is mixed: solid earnings lift stock prices, while expensive oil and high borrowing costs weigh in the opposite direction. According to CME FedWatch, traders price an 83% chance the Fed holds rates at its October 28 meeting, and the US 10-year Treasury yield stands at 5.123%. Economists polled by Reuters expect the Bank of Japan to raise rates in December, so the yen and oil remain key themes for investors.

market impact

Asian and US equities: strong earnings support sentiment; oil and yields pressure Asian markets and the yen

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