US Futures Rise as Iran Deal Offsets Fed’s Hawkish Attitude – Asia Market Wrap
US equity futures advanced while oil extended its decline after Trump signed an interim agreement aimed at ending the Iran conflict and reopening the Strait of Hormuz, boosting risk appetite despite the Fed’s hawkish policy stance.
S&P 500 futures rose as much as 0.9% and Nasdaq 100 futures gained 1.5%, led by strength in technology shares. The move followed Wednesday’s selloff, when US equities fell after the Fed signaled rates may need to rise further to contain inflation. Asian stocks climbed for a fifth consecutive session, with regional tech shares outperforming.
Brent crude dropped more than 2% to below $78/bbl as traders priced in the prospect of increased oil flows through the Strait of Hormuz. While Trump said the memorandum was signed and is now in effect, uncertainty remains over how quickly Iran will take concrete steps to fully restore shipping through the vital waterway.
Currency markets reflected a mixed risk backdrop. Most emerging Asian currencies weakened against the Dollar, including the Indonesian Rupiah and Philippine Peso. In Japan, the Yen fell to its weakest level against the Dollar since July 2024, increasing speculation that authorities could intervene in foreign-exchange markets.
The renewed pressure on the Yen comes despite the BoJ raising interest rates earlier this week to their highest level since 1995. Investors remain concerned that policymakers are not tightening quickly enough to curb inflation and support the currency, keeping attention firmly on Ueda and the outlook for further policy normalization.
