Asian stocks surge after oil falls, easing inflation fears

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Japan's stock benchmark soared 4% and other Asian markets surged Thursday after oil prices dropped, easing fears inflation was set to accelerate.

Wall Street's S&P 500 index rose 2.6% for its biggest daily gain in 12 years as prices swing wildly amid uncertainty about the impact of Russia's war on Ukraine.

“Markets seem to have latched onto a couple of slightly less dismal clues as an excuse to rally hard,” said ING economists in a report. “The basis for that optimism — it’s actually pretty thin.” Benchmark U.S. crude rose 36 cents to $111.50 per barrel in electronic trading on the New York Mercantile Exchange. The contract fell $15 to $108.70 on Wednesday. Brent advanced 26 cents to $116.12 per barrel in London. It lost $16.84 the previous session to $111.14.

Among Wednesday’s few decliners were oil-related companies. Halliburton fell 5.2%, though it still is up 52% for 2022. Ahead of Russia's Feb. 24 invasion of Ukraine, investors already were uneasy about plans by the Federal Reserve and other central banks to try to cool inflation by withdrawing ultra-low interest rates and other stimulus.

 

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