Rising Crude Prices Cap Wall Street Pre-Bell; Asia Up, Europe Off

MBA US Mortgage Applications Decline Further in Week Ended May 29 Despite Lower Mortgage Rates

Mortgage applications fell by 2.5% in the week ended May 29 despite a decline in 30-year fixed mortgage rates, according to Mortgage Bankers Association data released Wednesday.This follows an 8.5% decrease in overall activity in the week ended May 22.Applications for refinancing loans fell by 2%, while new purchase applications declined by a seasonally adjusted 3%.The average contract interest rate for 30-year fixed mortgages with loan balances of $832,750 or less fell to 6.57% from 6.65% in the previous week."The prospect of easing energy prices given the evolving situation in the Middle East brought mortgage rates slightly lower last week," said Joel Kan, MBA's vice president and deputy chief economist. "The retreat in rates, however, did not lead to an increase in mortgage applications. Purchase applications remained ahead of 2025's pace but were at its slowest weekly pace since April, and refinance activity was at its weakest since last June."

MBA US Mortgage Applications Fall 2.5% in Week Ended May 29 After 8.5% Decrease in Prior Week

AI Optimism Elevates Asian Stock Markets

Asian stock markets largely rallied on Wednesday amid optimism regarding artificial intelligence-related shares, following rallies in peer issues overnight on Wall Street. Concerns regarding Persian Gulf hostilities were shrugged off.Shanghai and Tokyo finished in the green, while Hong Kong lagged. Other regional exchanges finished higher, but with trading floors in Bangkok and Seoul closed on holiday.In Japan, the Nikkei 225 opened higher and rose to the close, finishing up 2.5% as investors again leaned into semiconductor-sector enterprises.The benchmark Nikkei 225 rose 1,667.89 to 68,402.13, striking a fresh apex, as gaining issues outnumbered losers 163 to 60.Leading the upside was semiconductor-manufacturing equipment maker Screen, up 17.9%, while software-quality tester Shift fell 12.2%.In economic news, Japan's composite purchasing managers index (PMI), a combination of the nation's manufacturing and services sectors, logged at 51.1 in May, down from 52.2 in April, but still notched above the 50-marker that separates growth from contraction.In Hong Kong, the Hang Seng Index opened lower and declined thereafter, finishing off 1.6% as traders mulled better investment opportunities in mainland shares or other markets. Mainland China-listed exchange-traded funds (ETFs) that target Hong Kong-listed equities logged a record $3.69 billion in outflows last week, according to news service Bloomberg.The broad gauge Hang Seng fell 405.11 to 25,633.21, as losing issues outnumbered gainers 76 to 13. The Hang Seng TECH Index lost 2.7% on the day, while the Mainland Properties Index fell 1.6%.Leading the upside was state-owned conglomerate CITIC, gaining 2.3%, while Wuxi Biologics declined 7%.On the mainland, the Shanghai Composite rose 0.2% to 4,083.97.In economic news, mainland China's composite purchasing managers output index registered at 54.0 in May, up from 53.1 in April, reported S&P Global/Rating Dog.On the other regional exchanges, the Taiwan TWSE inclined 2%; the Australian ASX 200 inclined 0.7%; and the Singapore Straits Times Index rose 0.8%. In late trading in Mumbai, the Sensex was down 0.4%The MSCI All Country Asia Pacific Index rose 0.6% on the day.