Asian Stocks Rise, Markets Begin to Breathe from Strait of Hormuz Risks
Asian stocks opened higher after Wall Street rebounded, boosted by hopes the Iran war is moving toward de-escalation. However, trading activity is expected to be quieter as several Asian markets are closed for holidays.
Early in the session, Japan's Nikkei 225 index rose 1.6% and South Korea's Kospi jumped 2.9%. This gain followed the S&P 500's close of a slight 0.1% gain on Thursday, after previously falling as much as 1.5% amid concerns about the Middle East conflict.
Sentiment improved as oil prices weakened from their peak levels following reports that Iran was drafting a protocol with Oman to monitor traffic in the Strait of Hormuz, which has been virtually closed since the war began. Lower oil pressure is considered key as current energy movements significantly influence risk appetite, although a stock market recovery remains vulnerable if the situation escalates again.
On the other hand, uncertainty remains high. President Donald Trump reportedly issued new threats against Iranian infrastructure to pressure Tehran in negotiations, while the market believes the direction of the conflict will still be largely determined by headline developments. Several analysts believe volatility has the potential to remain elevated in the short term due to the uncertain duration of the impact of global energy supply disruptions.
Friday's trading also took place under thinner liquidity conditions: exchanges closed included Australia, New Zealand, Hong Kong, Singapore, the Philippines, and Indonesia, while US markets were also closed for Good Friday. However, the US government is still scheduled to release economic data, including the March nonfarm payrolls report, which could potentially influence the market's future direction. (asd)
Source: Newsmaker.id
