Stocks Rise, Oil Eases as Iran Proposes Hormuz Reopening – Asia Market Wrap
Stocks moved higher and oil trimmed earlier gains after a report that Iran had presented the US with a proposal to reopen the Strait of Hormuz, easing concerns that efforts to revive peace talks had stalled.
MSCI’s Asia Pacific index climbed 1.7%, while its emerging markets gauge reached a record after a report outlined Iran’s proposal to end the conflict, including delaying nuclear negotiations. Asian semiconductor shares led the advance, with Taiwan Semiconductor Manufacturing jumping 6% to a record high. A regional technology index also hit an all-time peak.
Equity futures pointed to further gains on Wall Street, building on record closes at the end of last week. European markets were also set to open about 0.3% higher.
Brent crude reduced its advance to about 1%, trading near $106.50 a barrel after earlier rising as much as 2.5%. Reopening the Strait of Hormuz would allow oil and gas shipments to resume through the vital Middle East route. The dollar index slipped 0.1%.
The improved sentiment followed a setback in diplomatic efforts over the weekend, when President Donald Trump canceled a planned envoy trip and Tehran said it would not negotiate under pressure. While global stocks have largely recovered losses linked to the conflict and reached fresh highs, the rally faces a key test this week with central bank decisions from the Federal Reserve and the European Central Bank, along with earnings from major technology companies.
Elsewhere, Treasuries edged lower, giving back part of Friday’s gains after the Justice Department ended its investigation into the Federal Reserve. The 10-year yield rose two basis points to 4.32%.
Global equities begin the week near record levels, with the S&P 500 up almost 10% since late March, putting it on track for its strongest monthly performance since 2020. The end of the Justice Department probe into Chair Jerome Powell has also cleared the way for Kevin Warsh’s confirmation, reinforcing expectations that the central bank could resume rate cuts before the end of the year.
