Asian stock markets rise as Middle East tensions ease
Most major Asian equity markets traded higher, reflecting improving international risk appetite after oil prices extended their decline
Most Asian stock markets posted modest gains on Monday as easing Middle East tensions and a sharp retreat in oil prices improved risk sentiment, while investors looked ahead to a pivotal week of central bank meetings.
Meanwhile, Brent crude’s sharp decline after an apparent pause in Iran-U.S. hostilities eased immediate inflation concerns.
Most major Asian equity markets traded higher, reflecting improving international risk appetite after oil prices extended their decline.
S&P/ASX 200 led gains, gaining 1.1%, while TOPIX jumped 1% and Nikkei 225 rose 0.4%.
In Greater China, Hang Seng added 0.7%, the Shanghai Composite advanced 0.4%, and the Shanghai Shenzhen CSI 300 rose 0.3%.
China’s market was supported by strong gains in technology and battery names. Contemporary Amperex Technology Co Ltd climbed after reporting stronger first-half earnings and announcing a new share buyback programme.
Chinese memory chipmaker CXMT Corp surged more than 500% on its market debut, highlighting continued investor enthusiasm for semiconductor champions as China accelerates efforts to build a self-sufficient chip industry.
KOSPI was the laggard, declining 1% as heavyweight technology stocks weighed on sentiment despite the broader improvement across Asia.
Naver Corp bucked the broader trend, rising around 8%, after the internet company said NVIDIA Corporation would acquire $1 billion of newly issued shares as part of a partnership to build an artificial intelligence data centre.
FTSE Straits Times Singapore edged 0.2% higher after the Monetary Authority of Singapore unexpectedly tightened policy by increasing the slope of its exchange-rate band, lifting the Singapore dollar.
Jakarta Stock Exchange Composite Index gained 0.2% as investors weighed the surprise resignation of Bank Indonesia Governor Perry Warjiyo, while markets assessed what the leadership change could mean for future monetary policy and support for the rupiah.
FTSE Malaysia KLCI added 0.5%, PSEi Composite advanced 0.8%, while SET Index slid 0.7%.
NZX 50 rose 0.3%, extending the broadly positive tone across equities.