On US-Russia talks, Stocks Rise & the Euro Strengthens – Asia Market Wrap
Asian equities surged as US-Russia negotiations raised hopes for a settlement to the conflict in Ukraine. The better outlook for Chinese markets fuelled risk sentiment as well.
A barometer of Asian equities rose for the second day, led by shares in Japan and Hong Kong. European stock index futures rose by approximately 1%, as did S&P 500 contracts. Global markets ignored the higher-than-expected US inflation statistics, which weakened bets on rate reduction, instead focussing on Trump’s Ukraine peace negotiations with Russia. The Euro increased 0.5% against the Dollar, outperforming the majority of its G-10 counterparts.
The increase in risk appetite comes after the Asian regional stock index has underperformed its worldwide rivals this year, driven down by Trump’s tariff threats, a stronger currency, and China’s lack of domestic policy stimulus. In recent weeks, however, Chinese equities have risen due to a breakthrough in AI.
Oil prices fell further following the US-Russia discussions, fuelling expectations that dangers to Russian supply may be reduced. Asian shipping stocks slumped on concerns that freight prices could fall.
