Asian stock markets surged following hopes that renewed U.S.-Iran negotiations would ease war worries, driving oil prices lower as investors returned to risk-taking.
On Wednesday, Asian shares climbed to their highest level in six weeks, boosted by hopes that the U.S. and Iran might resume peace talks, which lowered global oil prices and alleviated investor concerns over Middle East tensions.
This came after President Donald Trump revealed that talks with Iran could restart in Pakistan within days, following failed weekend negotiations and subsequent U.S. sanctions blocking Iranian ports.
Positive diplomatic signals caused oil prices to fall significantly, with Brent crude dropping 0.7% to $94.13 per barrel after a nearly 5% decline the previous day.
Meanwhile, the MSCI Asia-Pacific index rose 1.5%, hitting a six-week high, and Japan’s Nikkei index surged 1.2%, nearing an all-time high.
In China, blue-chip stocks gained 0.5%, while Hong Kong’s Hang Seng index increased by 1.2%.
Analysts believe the market is overlooking short-term impacts from Middle East conflicts and expect the situation to improve soon.
At the same time, U.S. stock markets also advanced, with the Nasdaq soaring 2%, marking a 10-day winning streak, and the S&P 500 approaching record highs.
The U.S. dollar stabilized after seven consecutive days of decline, while the euro traded near a six-week peak.
U.S. government bonds recovered slightly, with yields on two- and ten-year notes falling as investors eased inflation concerns linked to the conflict.
Gold prices edged up 0.1% to $1,846 per ounce.
. Source:channelnewsasia
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