Ahead of US-Iran negotiations, Stocks Rise on Optimism – Asia Market Wrap
Asian stocks gained, extending their first weekly rise since the Middle East war began, as investors remained cautiously optimistic ahead of US-Iran negotiations this weekend. Oil was poised for its largest weekly drop in nine months.
The MSCI Asia Pacific Index rose 0.8% after Trump said he was “optimistic” about a deal with Iran, despite threatening Tehran with fees in the Strait of Hormuz. Technology equities, which are considered as less vulnerable to the Iran war, outperformed, with South Korea, a barometer for AI investment, rising 1.7%.
US equity-index futures reversed earlier losses, while similar contracts indicated gains for European markets. Brent reversed previous gains of up to 1.2% to trade 0.6% higher at $96.53 per barrel, boosting optimism. The Dollar, which emerged as a safe haven during the six-week conflict, was set to suffer its largest weekly loss since January.
Following the announcement of the ceasefire on Tuesday evening, the US and Iran appeared to suspend most strikes in the region on Wednesday. However, on Thursday evening, the Kuwaiti Foreign Ministry reported that Iran and its proxies carried out further drone attacks on a number of important facilities in the country.
Meanwhile, gold slipped lower at roughly $4,760 per ounce. Treasuries snapped a four-day rally as investors anticipated US inflation data due Friday to assess the impact of rising oil prices caused by the Iran war.
