Asian stocks soared at the open, tracking a Wall Street rally, with optimism that the war that has shaken global markets and disrupted energy supplies may be nearing an end. Shares in Japan, South Korea, and Australia rose, pushing the MSCI Asia Pacific Index up 1.6%. Along with that optimism, about seven stocks rose for every one that declined, driven by hopes that an end to the war could free up crude oil flows and support economic growth.
Oil prices stabilized after US President Donald Trump stated that he expected the war with Iran to end in two to three weeks, and that the Strait of Hormuz issue would be left to other countries to resolve. West Texas Intermediate crude oil prices hovered around $102 per barrel after falling 1.5% on Tuesday. Meanwhile, gold rose slightly in Asian trading this morning, and the US dollar weakened after the US trading session.
Meanwhile, Iran asserted that it has five demands that must be met before the war with the US and Israel can end. Trump announced he would provide a major public update at 9 p.m. US time on Wednesday regarding the developments in the situation with Iran. According to Michael Bailey of FBB Capital Partners, markets, which have been depressed for more than a month, are now responding positively to hopes for a resolution to the conflict that could restore investor confidence.
Although Trump suggested that a deal with Iran could be reached within that time, he emphasized that it is not a prerequisite for ending the war. Markets are focused on the status of the Strait of Hormuz, which remains unclear, which could be a determining factor in the continuation of tensions. Meanwhile, US economic data showed a slight increase in consumer confidence in March, although job openings declined, indicating a decline in labor demand ahead of the war. (asd)
Source: Newsmaker.id