As Crude Oil Drops on Iran, Stocks Approach Record Highs – Asia Market Wrap
Global markets rose to near-record highs as crude oil plummeted as authorities said the US was close to reaching an agreement with Iran to reopen the Strait of Hormuz and restore oil exports. The Dollar weakened.
The MSCI All Country World Index, the broadest measure of global equities, increased 0.3% to trade close to an all-time high set earlier this month. A barometer of Asian stocks rose 1.4%. Japan’s Nikkei index rose more than 3% to a new high, boosted by a rise in technology sectors. S&P 500 futures contracts increased by 0.9% to a new high.
The changes came after Brent fell more than 5% to $97.70 per barrel, the lowest in more than two weeks, on hopes that an agreement will assist restart the flow of oil through the critical Middle Eastern route.
Treasury futures rose on Monday as oil prices fell and inflation predictions fell, despite the fact that cash trade was suspended for a US holiday. Government bond yields in Japan and Australia have also fallen. Markets in Hong Kong and London are also closed. The Dollar fell versus all of its Group of 10 counterparts. Non-interest-bearing assets, such as gold and silver, rose as reduced inflation raises the prospect of interest rate decreases.
To halt capital outflows, China started an unprecedented campaign against unlawful cross-border trading, threatening severe penalties against popular brokers and forcing the liquidation of non-compliant accounts within two years.
