South Korea’s Kospi jumped 4.4%, extending its position as one of the world’s best-performing major equity benchmarks this year, while Japan’s Nikkei 225 gained 0.9%. The broader MSCI Asia Pacific Index rose 0.9%, snapping a three-day losing streak.
The recovery followed gains on Wall Street, where technology stocks bounced back after a recent selloff. Chipmakers, including Nvidia and Micron Technology, moved higher, while Intel rallied after a report said Alphabet’s Google plans to use the company to manufacture chips.
Also read: South Korea’s economy grows faster that anticipated, reinforcing central bank’s hawkish stance
Brent crude traded near $94.40 per barrel after retreating from earlier highs as Iran and Israel signalled a willingness to ease hostilities following a flare-up that had threatened ongoing peace negotiations.
The easing of geopolitical concerns helped investors return to risk assets after a week of sharp fall. Asian equities had retreated in recent days amid concerns over the conflict and growing expectations that the US Federal Reserve could raise interest rates following stronger-than-expected economic data.
According to Bloomberg, Morgan Stanley strategist Mike Wilson said the recent pullback was not unexpected given the pace of gains since March. He maintained a constructive view on equities, citing resilient earnings and economic growth, and described the correction as a healthy development for the broader bull market.
Investors are also closely watching developments around the Strait of Hormuz, a critical route for global energy supplies. While some commercial shipping activity has resumed, concerns about potential disruptions remain elevated.
Also read: SpaceX IPO is well oversubscribed as per reports; Here’s a timeline to its listing
Oil prices continue to be a key focus for investors assessing the inflation outlook. Attention now turns to US consumer price data due later this week. Economists expect headline inflation to accelerate to 4.2% year-on-year in May, which would mark the highest reading in more than three years.
However, core inflation is expected to ease slightly on a monthly basis, potentially offering some relief to Federal Reserve policymakers.
With inputs from Bloomberg
