Asian Markets Advance as Hormuz Reopening Hopes Support Global Rally
Asian equities traded mostly higher on Tuesday as investors welcomed signs that shipping through the Strait of Hormuz could soon return to normal, easing concerns over global energy supplies and supporting risk appetite across financial markets.
Japan’s Nikkei 225 briefly crossed the 70,000-point mark for the first time in its history before surrendering some gains after the Bank of Japan raised interest rates by 25 basis points to 1.0%.
The increase takes Japan’s benchmark interest rate to its highest level in more than three decades. Despite the move, the Nikkei remained firmly positive, trading up 0.6% at 69,713.05 in afternoon dealings.
South Korea’s Kospi continued its remarkable run, rising 2.1% to another record high of 8,721.64 as investors maintained strong exposure to technology and growth stocks.
Elsewhere, China’s Shanghai Composite edged less than 0.1% higher to 4,100.53, while Hong Kong’s Hang Seng fell 1.3% to 24,533.35. Australia’s S&P/ASX 200 slipped 0.3% as mining and energy stocks weighed on performance.
Taiwan’s Taiex gained 0.6%, while India’s Sensex added 0.5%, reflecting generally positive sentiment across regional markets.
The gains followed another record session on Wall Street overnight, where investors reacted positively to a tentative agreement between the United States and Iran that could lead to the reopening of the Strait of Hormuz.
The Dow Jones Industrial Average rose 0.9% to a record closing high of 51,671.03, while the S&P 500 gained 1.7%.
Technology stocks continued to lead the rally, with the Nasdaq Composite surging 3.1%. A major contributor was SpaceX, whose shares jumped 19.6% on their second day of trading following the largest IPO in market history.
The prospect of improved energy supplies and lower oil prices has helped reduce inflation concerns, supporting expectations that global economic growth could remain resilient despite recent geopolitical tensions.
Investors will continue to monitor developments surrounding the US-Iran agreement, with markets increasingly betting that a successful reopening of the Strait of Hormuz could provide further support for equities while keeping pressure on oil prices.
