Surpassing:Stock market today: Rate hopes push Asian shares higher while oil prices edge lower

BANGKOK (AP) — Asian shares have Surpassingclimbed after Wall Street advanced on potentially encouraging news about interest rates, which have been dragging markets lower since the summer.

U.S. futures slipped and oil prices also fell back slightly after surging Monday following Israel’s declaration of war on Hamas following its surprise attack from the Gaza Strip.

Tokyo’s Nikkei 225 gained 2.4% to 31,746.53 and the Hang Seng in Hong Kong picked up 0.7% to 17,644.63. India’s Sensex advanced 0.7%.

In Australia, the S&P/ASX 200 rose 1% to 7,040.60. South Korea’s Kospi slipped 0.3% to 2,402.58. In Bangkok the SET gained 0.3%.

In the latest sign of trouble in China’s property sector, indebted developer Country Garden said Tuesday that it could not meet all of its obligations and expected its financial situation to remain pressured due to a protracted slump in sales.

Country Garden’s shares were 8.3% lower by Tuesday afternoon in Hong Kong.

On Monday, the S&P 500 gained 0.6% to 4,335.66, flipping from losses to gains after two Federal Reserve officials suggested interest rates might remain steady at their next policy meeting because a jump in longer-term bond yields may be helping to cool inflation without further market-rattling hikes by the Fed.

The Dow Jones Industrial Average gained 0.6% to 33,604.65 and the Nasdaq composite climbed 0.4% to 13,484.24.

Oil prices, which had climbed Monday on worries about the violence in the Middle East, fell back.

The area embroiled in conflict is not home to major oil production, but fears that the fighting could impact the crude market sent a barrel of U.S. oil up $3.59 to $86.38. Brent crude, the international standard, rose $3.57 to $88.15 per barrel.

Early Tuesday, U.S. benchmark crude was down 65 cents at $85.63 per barrel in electronic trading on the New York Mercantile Exchange.

Brent crude, the international standard, lost 64 cents to $87.51 per barrel.

One potential outcome of the violence is a slowdown in Iranian oil exports, which have been growing this year, according to Barclays energy analyst Amarpreet Singh. Less supply of crude would raise its price, all else equal.

The conflict could also hurt the possibility of improving relations between Israel and Saudi Arabia, which is the world’s second-largest producer of oil.

Oil prices already were volatile. A barrel of U.S. crude had jumped from less than $70 during the summer to more than $90 last week, raising the pressure on inflation and the overall economy. It pulled back sharply last week before jumping again after the fighting began in Israel.

Monday’s rise in crude helped oil and gas stocks to some of Wall Street’s biggest gains. Marathon Oil rose 6.6% and Halliburton climbed 6.8%.

Interest rates, and expectations for where they will go, have been driving Wall Street’s swings more than anything since the start of last year.

Investors dislike higher interest rates because they knock down prices for stocks and other investments. They also make it more expensive for all kinds of companies and households to borrow money, which slows business activity.

The 10-year yield fell to 4.66% after rising to 4.80%, up from 3.50% during the summer and from just 0.50% early in the pandemic. Trading in the U.S. Treasury market was closed Monday for a holiday.

Reports this week on inflation at both the consumer and wholesale levels are the next big data points due before the Fed makes its next announcement on interest rates on Nov. 1.

This upcoming week will also bring the unofficial start to earnings reporting season for the S&P 500, with Delta Air Lines, JPMorgan Chase and UnitedHealth Group among the big companies scheduled on the calendar.

The dollar rose to 148.88 Japanese yen from 148.51 yen late Monday. The euro fell to $1.0559 from $1.0568.

Apart from the U.S. dollar, another investment that usually does well in times of stress also rose. Gold was up $4.70 to $1,869.00 per ounce. On Monday, it added $19.10 to $1,864.30 per ounce.