TOKYO: Asian stocks are mostly increasing after US crude prices ascended for a fourth straight day, raising hopes the oil price crash may be nearing an end.
Brent crude gained nearly 6% in New York to settle at $57.91 per barrel, its highest level this year.
Japan’s Nikkei 225 and the broader Topix both rose more than 2% while South Korea’s Kospi rose 0.7%.
Australia’s S&P/ASX 200 gained 1% due to a jump in energy shares and optimism from yesterday’s interest rate cut.
However, some analysts warned that the oil rally does not “spell an all-clear”.
“Oil prices have shown unusually sharp swings over the last few months, which are typical of markets trying to find a new equilibrium,” Chang Weiliang from Mizuho wrote in a report.
“For one, US shale producers remain a game-changer, with their flexibility to add or cut operating oil rigs likely to keep the longer-term volatility of oil under wraps.”
Investors will also be watching for major earnings from Japan this week, including Toyota Motors, Yahoo Japan and Mitsubishi.
