Investor Anxiety Over Middle East Conflict Eases as Asian Stock Markets Rise

Jakarta, CNBC Indonesia — Asian stock markets opened higher as investor concern about escalation in the Middle East eased. U.S. President Donald Trump said negotiations between Washington and Iran had entered the final stage, providing fresh optimism for regional equities.

Across Asia, major indices traded in positive territory. Japan’s Nikkei 225 rose 0.92%, buoyed by gains in technology shares and exporters. Meanwhile, Australia’s S&P/ASX 200 jumped 1.27% on a risk-on mood among global investors. Hang Seng futures also pointed higher, with Hang Seng futures at 25,761, higher than the previous close of 25,651.12.

Quoting CNBC International, optimism that geopolitical tensions could ease supported gains in global equity markets, while tempering the earlier rally in oil sparked by disruptions to energy distribution in the Gulf. West Texas Intermediate (WTI) crude futures rose 0.78% to US$99.03 per barrel in early Asia trade, while Brent crude climbed 0.73% to US$105.72 per barrel. In Wednesday’s session, WTI futures fell 5.66% and closed at US$98.26 per barrel, while Brent declined 5.63% and closed at US$105.02 per barrel.

Market participants also weighed developments in global oil prices after heightened volatility in recent days. Oil had briefly reversed sharply in earlier trade following signals of diplomacy between the US and Iran.

On the other hand, the US stock market remained a positive catalyst for Asian markets. The Dow Jones Industrial Average closed up 645.47 points, or 1.31%, to 50,009.35. The S&P 500 rose 1.08% to 7,432.97 and the Nasdaq Composite gained 1.54% to 26,270.36, supported by gains in technology shares and improving investor sentiment about the global economic outlook.

Nevertheless, US stock futures were set to move modestly lower in early trading. S&P 500 futures fell 0.3%, Nasdaq-100 futures declined 0.4%, while Dow futures were down around 52 points.