Asian shares advance as oil falls ahead of US inflation data
South Korea's Kospi rose over 5% and Japan's Nikkei gained about 3%, while Brent crude fell 1% to US$91.56 a barrel.
Asian equities climbed on Nov 10 as cheaper oil eased inflation concerns after US President Donald Trump said he plans to defer further military strikes against Iran. Investors were also awaiting US inflation figures that could influence expectations for interest rates.
In early trading, South Korea's Kospi advanced over 5% and Japan's Nikkei added about 3%. MSCI's broad Asia-Pacific share index gained 1.5%, recovering further from a seven-month low reached the previous week.
Brent crude traded near levels last seen in early September, falling 1% to US$91.56 a barrel amid hopes for US-Iran talks. Nick Twidale, chief market strategist at ATFX Global, cautioned that progress towards diplomacy did not guarantee lasting peace, and setbacks in negotiations could send prices sharply higher.
The Asian gains followed a US rebound on Monday. The S&P 500 rose 2.35%, marking its strongest daily advance since April, while the Nasdaq gained 2.7% in its best session in over four months.
Economists surveyed by Reuters forecast October increases of 0.3% for headline consumer prices and 0.2% for core prices. CME FedWatch showed traders assigning an 84% probability to a rate increase next month, compared with 74% a week earlier. The US dollar held steady during Asian trading.
