Asian Stocks Rise Following Wall Street, Markets Eye Hormuz and Oil
Asian stock markets rose on Tuesday, following Wall Street's gains after falling oil prices eased inflation concerns. Optimism grew on hopes that more tankers could return to transit the Strait of Hormuz.
Stocks opened higher in Japan, South Korea, and Australia, pushing the MSCI Asia Pacific Index up 0.9%. The US dollar remained relatively stable after posting its biggest decline in more than a month, while US government bonds traded limited after rallying on Monday.
In energy markets, Brent crude rose and traded around US$102 per barrel at the start of the Asian session, after falling 2.8% in the previous session. However, US stock index futures weakened slightly, signaling that the positive sentiment at the start of the week is losing steam.
Risk appetite was also supported by expectations that several countries would reduce oil reserves to offset potential supply disruptions. US President Donald Trump again called on allies to help secure the Strait of Hormuz, while threats to the shipping lane continue to fuel inflation concerns ahead of central bank meetings this week.
In the US, the S&P 500 posted its best daily gain since February on Monday, led by technology stocks. Nvidia rose 1.7% after stating it expects artificial intelligence chip revenue to reach at least US$1 trillion by the end of 2027.
Market participants now turn their attention to the central bank agenda, with the Federal Reserve expected to hold interest rates on Wednesday, followed by the Bank of England and the European Central Bank. In the Asia-Pacific region, the Reserve Bank of Australia is expected to raise interest rates, while the yen is in the spotlight as it approaches 160 per US dollar amid Japan's sensitivity to energy import costs. (asd)
Source: Newsmaker.id
