Asia Morning Call: Global Markets Overview
Asia Morning Call: Global Markets Overview
Global stocks surged while the U.S. dollar and oil prices slid on Monday as hopes for a deal to end the Iran war boosted risk appetite. The pan-European STOXX 600 rose 1%, Nasdaq futures gained 1.4%, and Japan's Nikkei breached the 65,000 level for the first time. China's Shanghai composite index closed 1% higher. Australian shares are expected to edge higher on Tuesday.
Foreign Exchange
China's yuan rose to a fresh three-year high against the dollar. The Australian and New Zealand dollars rallied on hopes of a U.S.-Iran deal. South Korean financial markets were closed for a public holiday.
Treasuries
Euro zone government bond yields fell to their lowest in about a month on hopes of a U.S.-Iran deal. Japanese government bonds rallied, with the 10-year yield sliding to 2.710%.
Commodities
Gold rose more than 1% as the dollar and oil prices fell. Oil prices dropped nearly 7% on optimism for a peace deal. Copper prices rose. Iron ore prices pared gains as shipments jumped. Malaysian palm oil futures closed lower. Japanese rubber futures rose.
Impacted Symbols
Symbols affected by this headline and their sentiment signals
Japan 225 Index
The Nikkei 225 surged 2.87% to breach 65,000 for the first time, fueled by risk appetite on hopes of ending the Iran war.
STOXX 600
The STOXX 600 rose 1% to a two-month high, nearing its February record, driven by optimism over a potential Iran peace deal.
Nasdaq futures rose 1.4% on Iran deal hopes and AI enthusiasm, though US markets were closed for a holiday.
SSE Composite Index
The Shanghai composite rose 1%, lifted by coal supply concerns and semiconductor shares, with the Iran deal providing indirect support.
S&P/ASX 200 Index
The S&P/ASX 200 edged higher on commodity prices and Iran peace hopes, but the impact was limited.
U.S. DOLLAR / CHINESE YUAN
The yuan rose to a three-year high against the dollar as the greenback fell broadly on Iran deal hopes and prospects of reopening the Strait of Hormuz.
AUD/USD
The Aussie rallied 0.5% on wagers that a US-Iran deal was closer, but stopped short of resistance.
GOLD (US$/OZ)
Gold rose 1.2% as the dollar and oil fell on Iran peace hopes, easing inflation fears.
Iron ore prices pared gains as shipments from Australia and Brazil jumped; the Iran news had only indirect and limited impact.
Copper prices rose 0.90% as the dollar and oil fell, easing inflation and global slowdown fears.
WTI crude fell 6.5% to $90.88 on Iran deal hopes; reopening of the Strait of Hormuz could increase supply.
Brent crude fell 7% to $96.30 on optimism over a US-Iran peace deal and potential reopening of the Strait of Hormuz.
Japanese rubber futures rose 0.49% on improved market sentiment from Iran war hopes, but the impact was limited.
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