Asian shares climb, oil prices jump more than USD 1.20 on report Israel may attack Iran

Hong Kong, May 21 (AP) Shares rose in Asia on Wednesday while oil prices jumped more than USD 1.20 a barrel following a report that Israel may be planning an attack on Iranian nuclear facilities.

Oil prices surged after a CNN report cited unnamed intelligence officials saying Israel may be preparing for an attack on Iranian nuclear facilities. Oil prices tend to rise with conflicts that might disrupt oil supplies.

US benchmark crude oil gained USD 1.21 to USD 63.24 per barrel while Brent crude, the international standard, rose USD 1.20 to USD 66.58 per barrel.

In talks on the nuclear issue, Iranian officials have warned they could pursue a nuclear weapon with their stockpile of uranium enriched to near weapons-grade levels. US President Donald Trump has repeatedly threatened to unleash airstrikes targeting Iran's programme if a deal isn't reached.

In share trading, Tokyo's benchmark Nikkei 225 fell 0.1 per cent to 37,491.80. Gains have been constrained by the continued worries over higher tariffs Trump has imposed on many US trading partners since taking office.

Earlier this week, Japanese officials said they were insisting all of his higher tariffs on imports from Japan be removed as part of talks with Washington.

In a step that further weakened Prime Minister Shigeru Ishiba's faltering administration, the agriculture minister, Taku Eto, resigned after an outcry over comments he made about not having to buy rice, but getting it for free, at a time when shortfalls in supply have pushed prices of the staple grain sharply higher.

In Hong Kong, the Hang Seng picked up 0.4 per cent to 23,772.34, while the Shanghai Composite index edged 0.2 per cent higher to 3,384.90.

Australia's S&P/ASX 200 surged 0.8 per cent to 8,411.50, while the Kospi in South Korea also gained 0.8 per cent, to 2,621.32.

Taiwan's Taiex advanced 0.6 per cent.

On Tuesday, the S&P 500 lost 0.4 per cent to 5,940.46, for its first drop in seven days.

The Dow Jones Industrial Average fell 0.3 per cent to 42,677.24, and the Nasdaq composite fell 0.4 per cent to 19,142.71.

Treasury yields and the value of the US dollar held relatively stable following a brief jolt Monday morning after Moody's Ratings said the US government no longer deserves a top-tier credit rating because of worries about its spiralling debt.

US government debt could be set to get even bigger with Washington debating more cuts to taxes.

Stocks of companies in the travel industry led the way lower on doubts about how much US households will be able to spend on summer vacations.

Airbnb dropped 3.3 per cent, Norwegian Cruise Line fell 3.9 per cent and United Airlines lost 2.9 per cent. Viking Holdings fell 5 per cent even though the company, which offers river cruises and other trips, reported stronger results than analysts expected for the latest quarter.

Home Depot slipped 0.6 per cent after reporting a profit for the start of the year that came up just short of analysts' expectations, though its revenue topped forecasts. The home-improvement retailer also said it's sticking with its forecasts for profit and sales growth over the full year.

That's counter to a growing number of companies, which have recently said tariffs and uncertainty about the economy are making it difficult to guess what the upcoming year will bring.

Trump has delayed or rolled many of the stiff tariffs he has imposed as he tries to compel companies to move manufacturing to the United States. Investors are hopeful that Trump will eventually lower his tariffs after reaching trade deals with other countries, but that's not a certainty.

On the winning side of Wall Street was D-Wave Quantum, which jumped 25.9 per cent after releasing its latest quantum computing system. The company says it can solve complex problems beyond the reach of classical computers.

Target and Home Depot rival Lowe's will report their latest results on Wednesday.

In the bond market, the yield on the 10-year Treasury edged up to 4.47 per cent from 4.46 per cent late Monday. The two-year yield, which more closely tracks expectations for action by the Federal Reserve, edged down to 3.96% from 3.97 per cent.

In currency dealings, the US dollar fell to 144.10 Japanese yen from 144.51 yen. The euro rose to USD 1.1307 from USD 1.1284. (AP) GRS GRS

Source: PTI