Awaiting a Peace Deal, Record Stock Rally Stalls – Asia Market Wrap
A record-breaking rise in global markets paused in Asia as investors reduced positions ahead of the weekend while waiting for movement on extending the US-Iran ceasefire.
The MSCI All Country World Index, the broadest measure of global stock prices, fell 0.1% after a 10-day run that sent it to a record high on Thursday. While Wall Street indices closed at all-time highs, momentum waned in Asia, with regional shares down 0.9% as traders waited for signs of progress in talks aimed at extending the US-Iran truce, which is slated to expire next week. Equity-index futures showed that European stocks would likewise open lower.
Brent, the global crude standard, fell 1.2% to $98.20 per barrel after Trump voiced hope about reaching a durable cease-fire with Iran. Gold was slightly higher at around $4,800 per ounce, while Treasuries and a Dollar index were little changed in a cautious close to the week.
Optimism about lowering Middle Eastern tensions has helped various equity markets unwind war-related risk premiums. Benchmarks in Singapore and Taiwan, as well as China’s CSI 300 Index, have all recovered losses following the US and Israel’s attacks on Iran in late February.
On Thursday, Japan’s Nikkei 225 Stock Average closed at a fresh record high, wiping its losses from the Iran war on hopes that new peace talks could speed the conflict’s resolution. The gauge fell 1% on Friday.
