Kamal Ghorui
File photo (Picture credit: AP)
Asian markets rose on Wednesday, following strong gains on Wall Street. Lower oil prices and renewed hopes for talks between the United States and Iran increased investor confidence.MSCI’s broadest index of Asia-Pacific shares outside Japan rose 1.5% to a six-week high, while Japan’s Nikkei gained 1.2%, inching closer to its late-February record levels. Chinese blue-chip stocks advanced 0.5%, and Hong Kong’s Hang Seng index added 1.2%, reflecting a broad-based regional rally.The upbeat mood followed comments by US President Donald Trump that talks with Iran could resume in Pakistan within days after last weekend’s negotiations collapsed.
Oil prices ease as diplomacy hopes return
Optimism around renewed talks helped push Brent crude below the $100 mark, easing concerns about prolonged supply disruptions due to the ongoing conflict and the closure of the Strait of Hormuz.“The impressive price action in risk assets suggests markets are keen to look through the immediate impact of the Middle East conflict,” analyst Tony Sycamore of IG said, adding that there is growing expectation the standoff could soon be resolved, according to Reuters.
Wall Street strength lifts global sentiment
Wall Street provided further momentum overnight, with the Nasdaq rising 2% to mark its 10th consecutive day of gains, while the S&P 500 hovered near record highs.The tech-heavy Nasdaq 100 has logged its longest winning streak since 2021, signalling strong investor appetite for risk assets.Cooling US producer inflation data also supported sentiment, with prices rising less than expected in March, helping ease fears of war-driven inflation pressures.
Dollar steadies, risks still loom
Meanwhile, US Treasury yields slipped slightly, and the dollar steadied after seven consecutive sessions of decline. Gold prices edged up 0.1% to $4,846 an ounce.Despite the rally, risks remain. The International Monetary Fund has warned that the global economy could be pushed towards recession if the Middle East conflict escalates further, underlining the fragile balance between geopolitical tensions and market optimism.
