Global Stock Rally Expands on Optimism for the Iran Deal – Asia Market Wrap
Equities surged to new highs on hopes that the US and Iran were close to reaching an agreement to end their feud, extending a run that has frequently propelled global stocks to new heights.
The MSCI All Country World Index rose 0.3%, while the MSCI Asian gauge increased 1.9%, both setting new records. That was fuelled by a catch-up rally in Japan’s Nikkei 225 index, which also reached an intraday high. South Korea, a tech investment bellwether, has surpassed Canada to become the world’s seventh-largest equity market in terms of value.
Asian advances mirrored Wall Street indexes, which closed at record highs on Wednesday as traders increased bets on future increases after over 80% of S&P 500 Index companies posted better-than-expected results this season. Brent crude maintained most of its losses from the previous session, trading just around $102 per barrel, on expectations that a US-Iran agreement may assist resume oil transit through the critical Strait of Hormuz.
The Yen remained in focus, trading barely changed at 156.30 per Dollar in Asian trade after surging on Wednesday on speculation that policymakers are interfering in the market.
Meanwhile, Asia’s principal Dollar bond market erupted on Thursday, with four issuers offering US dollar notes, including the Hong Kong government’s multi-currency benchmark. Spreads in the region fell to new lows on optimism over a potential US-Iran accord.
