Kamal Ghorui
Asian stock markets rose on Tuesday, tracking gains on Wall Street, after US president Donald Trump said Washington had talks with Iran on a possible end to the ongoing conflict in the Middle East. Investor sentiment improved cautiously following Trump’s remarks about “productive talks” over the past two days aimed at “a complete and total resolution of our hostilities in the Middle East,” even as Tehran denied such discussions. Japan’s benchmark Nikkei 225 rose 0.8% in morning trade to 51,908.00, recouping part of the previous session’s losses. Shares of Toyota Motor Corp. gained 1.3% after the company announced a $1 billion investment in its US plants in Kentucky and Indiana, part of a broader $10 billion plan over five years.Elsewhere, Australia’s S&P/ASX 200 added 0.4%, South Korea’s Kospi rose 0.6%, Hong Kong’s Hang Seng climbed 1.1%, and China’s Shanghai Composite edged up 0.2%.
Oil prices rebound amid Strait of Hormuz concerns
In commodities, US crude rose $3.55 to $91.68 a barrel, while Brent crude gained $3.83 to $103.77, reversing earlier losses.Markets remain sensitive to disruptions around the Strait of Hormuz, a key route for global energy supplies, particularly for Asian economies dependent on Middle Eastern oil.Over the weekend, Trump warned he would “obliterate” Iran’s power plants if it failed to reopen the strategic waterway within 48 hours.Tehran rejected Trump’s assertion of ongoing negotiations. Iranian parliament speaker Mohammad Bagher Qalibaf said “fake news is used to manipulate the financial and oil markets” in a post on X.The conflicting narratives have contributed to volatility across global markets.
Wall Street rally supports global sentiment
US markets closed higher on Monday, with the S&P 500 rising 1.1%, the Dow Jones Industrial Average gaining 1.4%, and the Nasdaq Composite climbing 1.4%. Smaller stocks also advanced, with the Russell 2000 jumping 2.3%.Bond markets reflected easing concerns, with the 10-year US treasury yield slipping to 4.35% from 4.39% late last week, though still above pre-war levels.In currency trading, the US dollar strengthened slightly to 158.61 Japanese yen, while the euro edged lower to $1.1585.According to AP, global markets have seen sharp swings since the conflict began in late February, driven largely by uncertainty over energy supplies and geopolitical risks.While Trump’s comments offered temporary relief, analysts say markets remain highly sensitive to developments in the US-Iran standoff, particularly any escalation affecting oil flows through the Strait of Hormuz.(With inputs from agencies)
