Asia shares bounce, others cautious as oil rises

Business Recorder reported that Asian equities advanced on Monday, as a robust US jobs report was seen as supportive of global growth even though it reduced the odds of a rise in interest rates. Oil prices edged higher after American and Iranian forces attacked ships in the Gulf, and Japan's Nikkei rebounded 2.0% while South Korea rallied 3.0%.

Tehran said it plans to declare a limited area beyond the Strait of Hormuz in the coming days, after US forces struck three Iranian tankers and the Islamic Revolutionary Guard Corps fired ballistic missiles at two US Navy vessels. Brent crude rose 0.2% to $96.45 a barrel, following a climb of almost 10% last week, while US crude gained 0.4% to $91.85 a barrel.

Markets are also watching US consumer price data due on Friday, where core CPI is forecast to rise 0.2%. The European Central Bank is seen as certain to raise rates to 2.75% on Thursday, while 10-year Treasury yields hovered at 4.7840%, close to the peak seen since late 2023. Higher bond yields continue to weigh on equity valuations, and a high reading could push yields toward the 5.0% level.