Precise Investors Editorial Team
MSCI’s broadest index of Asia-Pacific shares outside Japan was up 1%, hitting another all-time high
Asian stocks soared to record highs on Thursday and oil nursed steep losses as traders embraced the prospect of a peace deal in the West Asia, although the fate of the crucial Strait of Hormuz remains unresolved.
Nikkei returned from a long holiday to cross 62,000 for the first time, catching up on a blistering AI-led rally after robust earnings that has also catapulted South Korean and Taiwan stocks to records.
MSCI’s broadest index of Asia-Pacific shares outside Japan was up 1%, hitting another all-time high. The index is up 7% so far this week.
Kyle Rodda, senior financial analyst at Capital.com, said the market moves on Thursday were justified as a deal would be a breakthrough.
But we’ve seen this story before, and the rug could get pulled out of the market pretty quickly too. Ultimately, if we keep seeing progress in talks, Asian markets will keep rallying, he said.
Iran said it was reviewing a peace proposal that sources said would formally end the war while leaving unresolved US demand that Iran reopen the Strait of Hormuz, whose closure has sent oil prices surging.
A potential deal to end the war, which started at the end of February, sent oil prices declining almost 8% on Wednesday. Brent crude was a bit higher at $102.11 a barrel in early Asian hours on Thursday.
Even if the strait reopens in coming weeks, oil is likely to stay elevated and slow to ease given damage to energy infrastructure and precautionary stockpiling, said OCBC analysts in a note.
The yen remains in the spotlight after bouts of surges in the past few sessions triggered speculation that Tokyo may be stepping in to support the battered currency.
It was last at 156.29 per dollar, little changed on the day, having hit a 10-week high of 155 in the previous session in a sudden jump.
The surging oil prices hit global markets in March but a fragile ceasefire and the prospect of a deal spurred a risk-on rally since April.
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