Asia Stocks Rise as Israel-Iran Truce Holds, Powell Hints at Rate Cuts – Asia Market Wrap

Stocks in Asia edged higher as the Israel-Iran truce appeared to hold and Treasury traders ramped up bets for US interest rate cuts.

MSCI’s gauge for Asian equities climbed 0.3% on Wednesday following a more than 2% rise in the previous session, when US President Donald Trump announced a ceasefire between the Middle East rivals. US equity futures were little changed after the S&P 500 climbed 1.1% and the Nasdaq 100 rose 1.5% on Tuesday, notching its first record since February.

Treasuries and a gauge of the dollar steadied. The benchmark 10-year yield shed five basis points on Tuesday after Federal Reserve Chair Jerome Powell said “many paths are possible” for monetary policy, with data showing weakening consumer confidence. Traders continued to keep a close eye on the Middle East as the nascent peace deal remains precarious. Iran and Israel appeared to honor the agreement after Trump lashed out at both side for early breaches.

Oil rebounded – after posting the biggest two-day decline since 2022 – as traders assessed the ceasefire and an industry report that pointed to another drop in US crude stockpiles.

The dollar was weaker against most major peers. Asian currencies including the Philippine peso and Indonesia’s rupiah strengthened for a second day. The Australian dollar swung after monthly inflation data missed estimates.

Powell’s remarks before the House Financial Services Committee came on the heels of the Fed’s decision last week to stay on hold. While the Fed chair largely maintained his call for patience as the economy absorbs the impact of trade tariffs, he said that lower inflation and weaker labor hiring could lead to an earlier rate cut.