Oil Falls and Equities Rally on Ceasefire Optimism – Asia Market Wrap
Stocks climbed to record highs while oil prices declined after the US and Iran reached a tentative agreement to extend their ceasefire, pending approval from President Donald Trump.
The MSCI All Country World Index, the broadest gauge of global equities, rose 0.4% to an all-time high as easing Middle East tensions boosted optimism for lower energy costs and stronger economic growth. A rally in technology shares pushed Asian equities up 2% to a record, while futures pointed to gains for European markets at the open.
Market sentiment also improved as Brent crude fell 1.2% to $92.60 a barrel following the proposed 60-day extension of the ceasefire and plans for additional talks on Tehran’s nuclear program. Brent has dropped more than 18% in May and is on course for its steepest monthly decline since March 2020.
Technology remained a central focus, with SpaceX lowering its IPO valuation target to at least $1.8 trillion, while Dell surged nearly 40% in extended trading after issuing a strong sales outlook.
The S&P 500 is on pace for a ninth consecutive week of gains, a streak achieved only four times since 1985. Asian markets were also set for a second straight weekly advance.
The yen traded near 159.30 per dollar after Tokyo inflation unexpectedly cooled for a sixth consecutive month. Treasuries held onto gains from the previous US session, with the 10-year yield steady at 4.44%.
The dollar was little changed after Thursday’s decline. Still, the currency’s rally this month — fueled by expectations of higher US interest rates — has left many Wall Street strategists cautious about additional upside.
Gold traded around $4,500 an ounce and was headed for a third straight monthly decline, its longest losing streak since October 2022.
