Stocks Rise, Oil Falls as Trump Signals Iran Talks – Asia Market Wrap
Stocks advanced while oil prices declined after President Donald Trump indicated a willingness to restart negotiations with Iran, raising hopes for a potential agreement that could ease tensions in the Middle East.
Treasuries gained, with the 10-year yield slipping one basis point to 4.28% as lower oil prices helped reduce inflation pressures. Gold recovered after two days of declines to trade near $4,775 an ounce, while Bitcoin rose to around $74,400. Copper climbed to its highest level in over a month.
Technology shares were a key driver of the move, with MSCI’s Asia Pacific tech gauge jumping 4.2%. Companies such as Kioxia surged 15% in Tokyo. Taiwan’s main index reached a record high as investors returned to artificial intelligence-related stocks, which are viewed as less exposed to the Iran conflict. South Korea’s Kospi rose 3.4% as improving sentiment helped the S&P 500 erase losses linked to the geopolitical tensions.
Brent crude dropped 1.5% to $97.90 a barrel on signs that Washington and Tehran may resume talks, even after the US imposed a blockade on the Strait of Hormuz. The dollar weakened against most major currencies, while Treasuries edged higher as softer oil prices eased concerns about inflation.
Equities are gaining as investors focus on the possibility that US-Iran discussions could progress, supporting confidence in a deal despite ongoing tensions. The blockade is also being interpreted as a targeted effort to limit Iran’s oil revenues while creating conditions for securing shipping routes, reinforcing expectations that energy supplies could eventually stabilize.
