Markets Cheer, Central Banks Warn

Markets Cheer, Central Banks Warn

While stock markets in Japan and South Korea surge to fresh records, central bankers are signaling that the inflationary damage from the Middle East crisis and its impact on energy supplies is already done.

Markets Optimistic, Central Banks Cautious

Japan's Nikkei has outpaced global indexes, driven by AI optimism and hopes for a US-Iran peace deal to reopen the Strait of Hormuz. However, US strikes on Iran's Hormozgan province have dented those hopes.

Bank of Japan Governor Kazuo Ueda cautioned that temporary energy shocks can have persistent impacts. ECB board member Isabel Schnabel said an interest rate hike in June is warranted even if a peace deal is reached.

Oil Prices and Tech Sector

With oil holding near $100 a barrel, Samsung Electronics workers approved a deal to avert a strike. Nvidia's Jensen Huang announced plans to ramp up annual investment in Taiwan to $150 billion.

In early trade, Euro Stoxx 50 futures rose 0.16%, German DAX futures edged up 0.06%, while FTSE futures eased 0.25%. US stock futures were flat.