Asian stocks rise, Iran tensions push oil higher

Asian stocks climbed Tuesday, led by a surge in Japan as speculation mounted that Prime Minister Sanae Takaichi could call a snap election. Tokyo’s Nikkei jumped more than 3 percent in early trade, buoyed by polls showing strong support for Takaichi’s government. Analysts said a vote could secure a firmer parliamentary majority and help advance her policy goals.

Other regional markets also rose, with Hong Kong up 1.5 percent, Shanghai gaining modestly, and Seoul, Singapore, Taipei, and Sydney all trading higher. The upbeat mood followed another record-setting session on Wall Street, where major US indexes extended recent gains despite the revelation of a Justice Department probe into the Federal Reserve.

Investors continued to show confidence in the broader global outlook, supported by advances in technology and artificial intelligence.

Oil prices crept higher after US President Donald Trump announced sweeping 25 percent tariffs on countries trading with Iran, adding fresh pressure following Tehran’s crackdown on nationwide protests. Analysts noted that Iran accounts for about 3 percent of global crude output, with China its largest trading partner.

Electric vehicle maker BYD jumped 4.5 percent in Hong Kong trading alongside other Chinese EV firms, helped by optimism after the EU offered Beijing alternatives to tariffs on imported China-made electric cars.

Key early figures (0200 GMT):
• Hong Kong Hang Seng: +1.5% at 27,014.90
• Shanghai Composite: +0.2% at 4,171.18
• Tokyo Nikkei 225: +3.2% at 53,576.08
• WTI crude: +0.4% at $59.73
• Brent crude: +0.4% at $64.10
• Euro/dollar: $1.1659
• Pound/dollar: $1.3470
• Dollar/yen: 158.48
• Euro/pound: 86.55 pence
• London FTSE 100: +0.2% at 10,140.70 (close)
• New York Dow: +0.2% at 49,590.20 (close)