Oil & Dollar Decline on Iran as Stocks Surge to Record – Asia Market Wrap
Global stocks climbed to fresh record highs as investors renewed bets on the AI trade, driving gains in chipmakers. MSCI’s All Country World Index rose 0.4%, while Asia Pacific equities gained 2.2%. Australian stocks also reached a record high after both the S&P 500 and Dow Jones closed at all-time highs, with US and European equity futures pointing to further gains.
Chipmakers remained in focus, with SK Hynix climbing 6.7% in Seoul and Nvidia gaining more than 2% in after-hours trading following positive commentary on its next-generation AI chips. However, caution persisted across parts of the sector as SpaceX fell 7.5% after forecasting higher AI-related spending, while AMD dropped 9% on a disappointing sales outlook.
Oil prices fell as optimism grew over a potential interim agreement between the US and Iran. Brent crude declined 0.7% to around $78.75 a barrel after reports that Washington, Tehran and Oman were nearing a deal to reopen the Strait of Hormuz. Treasuries advanced as traders scaled back expectations for further interest rate hikes.
The Dollar weakened for a third consecutive session as easing geopolitical tensions reduced demand for safe-haven assets. Meanwhile, gold climbed 1.4% to around $4,135 an ounce, with silver and platinum also advancing as lower expectations for rate hikes supported precious metals.
Markets remain focused on whether improving geopolitical conditions and resilient AI-driven earnings can sustain the recent rally, with investors continuing to balance optimism over technology against concerns over elevated valuations and corporate spending.
