Get 40% Off
🚀 AI-picked stocks soar in May. PRFT is +55%—in just 16 days! Don’t miss June’s top picks.Unlock full list

Asian stocks rebound as Middle East fears ease

Published 22/04/2024, 12:48 pm
© Reuters.
- Most Asian stocks rose on Monday, rebounding from steep losses in the prior week amid growing bets that a conflict between Iran and Israel will not worsen, although sentiment still remained on edge. 

A rout in technology stocks also appeared to have cleared after the sector, specifically chipmakers, logged heavy losses last week. 

U.S. stock index futures also rose in Asian trade, with Wall Street set for a rebound from sharp losses in the past week.

Chinese stocks edge higher as loan prime rate remains steady

China’s Shanghai Shenzhen CSI 300 and Shanghai Composite indexes rose 0.4% and 0.3%, respectively. The two indexes were among the few Asian bourses to end positively last week, as the prospect of more supportive measures from Beijing buoyed sentiment towards local markets. 

The People’s Bank of China left its benchmark loan prime rate unchanged at record-low levels on Monday, as it aimed to keep monetary conditions as loose as possible to support an economic recovery. 

Further reductions in the loan prime rate may be on tap later this year, given that Beijing still needs to increase its pace of stimulus measures to support the economy. 

Hong Kong’s Hang Seng index jumped 2.3% on Monday, rebounding from 

Asian markets buoyant as Iran-Israel fears ease 

Broader Asian markets rebounded from last week’s losses, as a lack of immediate escalation between Iran and Israel helped improve sentiment. 

Japan’s Nikkei 225 and TOPIX indexes rose 0.8% and 1.2%, respectively, after tumbling between 4% and 6.5% over the past week. 

Focus this week is squarely on a Bank of Japan rate decision later this week. The BOJ will meet for the first time after a historic interest rate hike in March.

Australia’s ASX 200 rose 1% after losing 2.8% last week, while South Korea’s KOSPI rose 0.9% from a 3.4% fall last week. 

Futures for India’s Nifty 50 index also pointed to a positive open. 

Regional markets had tumbled on Friday after Israel reportedly carried out strikes in and around Iran. 

But Iran downplayed the impact of the attacks, and outlined no immediate plans to retaliate. This drove up hopes that a conflict between Iran and Israel will not spill over into a broader war in the Middle East. 

Still, sentiment towards risk-heavy markets, particularly stocks, remained fragile, especially in the face of higher-for-longer U.S. interest rates.

Asian markets were still nursing a weak start to the second quarter, and were now awaiting a slew of key U.S. cues this week.

Several U.S. technology giants are set to report quarterly earnings this week, while PCE price index data- the Federal Reserve’s preferred inflation gauge- is also on tap. 

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.