Global Stocks Fall, Oil Gains on Iran Stalemate – Asia Market Wrap

Oil prices climbed for a fifth day as concerns persisted that the US and Iran were making little headway toward resuming de-escalation talks, effectively closing the Strait of Hormuz.

Brent, the global crude standard, increased 0.5% to almost $106 per barrel, bringing this year’s gains to approximately 74%. The commodity is poised for its largest weekly increase since the first week of the conflict, as the closure of the Strait hampers the flow of oil from the Middle East to the rest of the world.

Treasury 10-year rates and Bloomberg’s dollar index are both on track for their first weekly gains in a month, as optimism for reducing Middle East tensions receded, giving way to concerns over escalation. As optimism diminished, MSCI’s All-Country World Index dipped lower on Friday, preparing for its first weekly decline since April.

While markets have reacted to geopolitical worries, corporate profits have remained high. According to data, about 80% of US equity benchmark businesses have outperformed first-quarter earnings projections.

Semiconductor stocks were outliers in the US session, rising for the 17th straight day.