Asian Stocks Rise Ahead of Trump's Speech!
Asian stocks continued their rally as investors returned to riskier assets amid optimism that the Iran war is nearing an end. At the same time, oil prices weakened, reinforcing sentiment that the risk of energy supply disruptions may be easing.
Early trading in Japan and South Korea lifted the MSCI Asia Pacific Index up 0.5%. The gains in Asia followed Wall Street's rally, with the S&P 500 rising 0.7% and the Nasdaq 100 gaining 1.2% on Wednesday, buoyed by hopes that a de-escalation of the conflict would improve oil flows from the Middle East and boost growth prospects.
In commodity markets, Brent fell more than 1% to hover around US$100 per barrel. The dollar index also weakened 0.1%, signaling a broader risk-on mood as fears of a prolonged conflict begin to ease.
Investors' attention now turns to US President Donald Trump's prime-time speech at 9 p.m. Eastern Time, amid reports that Washington could soon de-escalate its military action against Iran. However, the Strait of Hormuz is reportedly still largely closed, so the market remains sensitive to policy signals and developments on the ground.
In other assets, gold continued its rally and traded near US$4,800 per ounce, while US Treasury yields were mixed following US employment and retail sales data. Investors are also monitoring additional policy risks, including the resurfacing of steel and aluminum import tariffs and a number of corporate news items, amid concerns that the recovery of oil flows could still take time even if the conflict subsides. (asd)
Source: Newsmaker.id
