Asian shares are mixed after gains on Wall Street, while oil prices climb

Asian stock markets were mixed on Monday, following a dip in the U.S. stock market from its record set on Friday. Oil prices climbed due to uncertainty surrounding the reopening of the Strait of Hormuz, which could restore the global flow of crude.

The S&P 500 fell 0.1% from its all-time high, while the Dow Jones Industrial Average dropped 60 points (0.1%) and the Nasdaq composite declined 0.3%. Momentum slowed for stocks after a rally driven by soaring profits for big U.S. companies. Earnings per share in the S&P 500 are reported to have jumped 50% in the spring compared to a year earlier, the best growth since five years ago during the economy's recovery from COVID.

Berkshire Hathaway experienced a stronger profit than expected, and the company, led by CEO Greg Abel, has invested some of its substantial cash reserves into stocks. Other companies, such as MarineMax and Varex Imaging, also reported significant gains following mergers and acquisitions. Intel, on the other hand, saw a decline of 4.1% after announcing a potential sale of $15 billion of its shares, which would dilute the ownership stakes of shareholders.

In the oil market, the price of Brent crude rose 5% to $87.72 a barrel, after fluctuating between $72 and $102 last month. Hopes of an agreement between the U.S. and Iran to reopen the Strait of Hormuz and resume oil exports have faded, causing the price to stabilize at its earlier levels and mid-July, mid-June, and the first week of March.

The upcoming report on inflation last month will likely be the main event for Wall Street this week. Economists anticipate a slowdown in inflation to 3.4% from 3.5% in June, which could ease pressure on the Federal Reserve to raise interest rates. Higher interest rates could further impact the stock market by making borrowing more expensive for households and companies and potentially reducing stock prices.