Asian stocks surge on US-Iran ceasefire news; Nikkei 225 and Kospi jump over 5%
Asian equity markets rallied on Wednesday, tracking US stock index futures, in reaction to the US-Iran ceasefire news, with Japan’s Nikkei 225 and South Korea’s Kospi rising over 5% intraday.
US President Donald Trump announced in a post on Truth Social that he will suspend planned military strikes against Iran for two weeks, provided Tehran agrees to a complete, immediate, and safe opening of the Strait of Hormuz. Iran said that it has accepted a two-week ceasefire, with negotiations to begin on Friday in Islamabad, Pakistan. The development boosts investors' confidence and triggers a massive risk-on rally across the global financial markets.
Meanwhile, Iran’s Foreign Minister, Seyed Abbas Araghchi, said in a statement that safe passage through the key waterway will be possible for a period of two weeks. Crude Oil prices plunge over 10% following the announcement, which eases inflationary concerns and tempers expectations for a more hawkish stance by major central banks. This turns out to be another factor that provides an additional boost to riskier assets and remains supportive.
As investors digest the latest optimism, the market focus now shifts to the release of FOMC Minutes, due later during the North American session. The attention will then shift to the US Personal Consumption Expenditure (PCE) Price Index – the Fed's preferred inflation gauge – and the crucial US Consumer Price Index (CPI) report on Thursday and Friday, respectively. The positive geopolitical developments, however, favor bullish traders.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Ondo Crypto Holds $0.53 as Bulls Defend Key $0.52 Support Amid Market Slide
AI boom reshapes the wafer foundry landscape! UBS: Explosive demand accelerates advanced process expansion, mature process enters upward cycle
UBS stated in a recent research report that within the foundry market, the Total Addressable Market (TAM) for the N2 (2nm) node far exceeds expectations, A14 (1.4nm) production expansion is accelerating, and the upcycle for mature process nodes has already begun.
$1,999 Foldable iPhone Is Ready, but Apple (AAPL.US) Faces Over $5.7 Billion Patent Penalty
As Apple intensifies its efforts in foldable displays and AI business, it faces a haptic technology patent compensation ruling exceeding $5.7 billion. On September 25, a federal jury in California found that Apple's Taptic Engine, used in certain iPhone and Apple Watch models, infringed on two patents held by Taction Technology.
Prospects for the opening of the Hormuz Strait are overshadowed, Asian bonds under pressure: 2Y Japanese bond yield approaches 2%, 3Y Korean bond yield rises to highest level since 2022
With high oil prices, short-term bond yields in South Korea and Japan have risen.
