World Shares Advance, Oil Slips Back   03/18 04:47

   Shares advanced Wednesday in Europe and Asia as oil prices fell back 
slightly despite a barrage of attacks by Iran on its Gulf neighbors.

   HONG KONG (AP) -- Shares advanced Wednesday in Europe and Asia as oil prices 
fell back slightly despite a barrage of attacks by Iran on its Gulf neighbors.

   U.S. futures rose 0.5% after a session of moderate gains on Wall Street 
ahead of the Federal Reserve's decision on interest rates later in the day. 
With higher oil prices feeding into other inflation, the Fed is widely expected 
to keep rates on hold.

   Worries over global oil and gas supplies and rising prices are still 
clouding global markets, though Brent crude, the international standard, fell 
slightly to $103.14 per barrel, down from above $106 on Monday.

   U.S. benchmark crude fell 1.6% to $94.67 per barrel.

   Iran lashed out Wednesday with multiple attacks on its Gulf neighbors and 
Israel following the killing of one of its top leaders in an airstrike, using 
some of its latest missiles to evade air defenses and killing two near Tel Aviv.

   But markets seem to have taken the latest escalations in stride.

   Germany's DAX rose 0.7% to 23,899.71 and the CAC 40 in Paris picked up 0.9% 
to 8,045.19. Britain's FTSE 100 edged 0.2% higher to 10,427.12.

   During Asian trading, Tokyo's Nikkei 225 gained 2.9% to 55,239.40 after the 
government reported exports were higher than expected in February.

   In South Korea, the Kospi jumped 5% to 5,925.03.

   Lower oil prices are a boon for big oil importers like Japan and South Korea.

   Hong Kong's Hang Seng reversed early losses, surging 0.6% to 26,025.42, 
while the Shanghai Composite index also rebounded, gaining 0.3% to 4,062.98.

   Australia's S&P/ASX 200 climbed 0.3% to 8,640.60.

   Taiwan's Taiex added 1.5% and India's Sensex advanced 1%.

   Global oil flows remain largely constrained, ING Bank analysts Warren 
Patterson and Ewa Manthey wrote in a research note on Wednesday, even as hopes 
were growing that Iran might be allowing more vessels through the Strait of 
Hormuz, a key waterway for global oil and gas transport.

   Roughly a fifth of the world's crude oil passes through the strait, which 
has been largely closed as Iran blocks ships linked to the U.S., Israel and 
their allies.

   On Tuesday, U.S. stocks held steadier as the S&P 500 rose 0.3% and the Dow 
Jones Industrial Average edged 0.1% higher. The Nasdaq composite added 0.5%.

   In other dealings early Wednesday, the U.S. dollar fell to 158.96 Japanese 
yen from 159.01 yen. The euro fell to $1.1536 from $1.1542.