Asian stocks opened higher, following Wall Street’s gains, boosted by optimism that the US and Iran could extend the ceasefire and resume peace talks. The MSCI Asia Pacific Index rose 0.4% on Thursday, as markets assessed that a de-escalation in the Middle East conflict could ease oil prices and support growth prospects.
Global sentiment strengthened after the S&P 500 and Nasdaq 100 closed at new records. The US rally was also supported by the performance of financial companies, with Bank of America and Morgan Stanley leading the financial sector’s gains after posting earnings that exceeded estimates.
In cross-asset markets, easing tensions weakened the dollar slightly, with the Bloomberg Dollar Spot Index heading for its longest losing streak since December 2006, according to the report. Brent traded just below US$95 per barrel, while gold edged up to near US$4,830 per ounce. US Treasuries gained slightly.
Sources familiar with the discussions said the US and Iran were considering extending the ceasefire for two weeks to allow time for negotiations, although tensions in the Strait of Hormuz remain a major risk point. This global stock rally marks a sharp reversal from last month’s sell-off, when the Nasdaq 100 briefly entered a technical correction. Some market players are beginning to reduce their defensive stance amid enthusiasm for the AI theme and resilient corporate earnings.
Technology stocks led the gains on Wall Street, with a rotation seen from previously surging chip stocks to lagging software stocks; Oracle rose 4.2% and Microsoft gained 4.6%. In emerging markets, the MSCI Emerging Markets Index rose 1.2%, extending its two-day rally to more than 3%. Goldman Sachs assessed that the strongest recovery rally was in North Asia, emerging Europe, and Latin America, while parts of ASEAN and India lagged behind due to ongoing physical disruption. (asd)
Source: Newsmaker.id