Asian Stocks Rise, But Hormuz Remains Focused
Asian stocks rose for a second straight day, driven by optimism over ongoing negotiations between the US and Iran. The MSCI Asia Pacific Index rose 0.2%, while the Nikkei 225 recorded a gain of more than 1%. US stock index futures, including the Nasdaq 100, also rose 0.4%.
However, caution returned to the market as Brent oil prices rose about 2% to above $104 per barrel after earlier falling. This fluctuation was triggered by uncertainty over whether US-Iran negotiations could reopen energy flows through the Strait of Hormuz, which impacts the global supply outlook.
The Japanese yen held relatively steady after the country's key inflation indicator slowed more than expected. Gold edged lower to around $4,530 per ounce, while concerns about a prolonged closure of the Strait of Hormuz pushed bond yields higher due to the potential for high inflation and the possibility of persistently high interest rates.
Iran-US talks remain uncertain, with comments by the Iranian Supreme Leader on uranium and the Hormuz toll dispute adding to the uncertainty. Iran and Oman are discussing a permanent toll system, while the US President has stressed that the Strait of Hormuz must be open and toll-free.
Several US officials see positive signs in the negotiations. US Secretary of State Marco Rubio cited some positive signs that a deal could be reached, while Iranian President Masoud Pezeshkian asserted that they "will not back down." Markets are urged to continue monitoring developments to determine pricing more definitively.
The Iran conflict has also added pressure on emerging Asian markets, with currencies and bond yields reaching levels previously considered impossible. S&P 500 futures rose 0.2%, Hang Seng futures rose 0.7%, Topix futures rose 0.5%, and Australia's S&P/ASX 200 rose 0.5%, while Euro Stoxx 50 futures remained relatively stable. (asd)
Source: Newsmaker.id
