Asian stocks started off the week in a positive mood on Monday. However, investors were on alert as they carefully assessed the rising tensions between Israel, Iran, and a new batch of Chinese economic data.
The geopolitical environment influenced the oil price increase, but most regional equity indexes found some momentum in their upward direction. The Sensex and other Indian benchmarks are in the spotlight.
Both sides exchanged strikes over the weekend, as hostilities continued between Israel and Iran.
The volatile environment led to a rise in oil prices and a rally of gold as investors sought safety from the global stock markets.
In spite of this, Asian stock markets appeared, at least during early trading, to have tried to ignore the geopolitical crisis.
China has released a number of key data points that have added to the complexity. The retail sales for May were up 6.4% compared to the same month last year.
The industrial production growth rate slowed down to 5,8% on an annual basis. As they digested the figures, investors kept an eye on Chinese markets.
In choppy trading, both the Mainland China CSI 300 Index and Hong Kong Hang Seng Index reported flat prices.
Other markets in the area saw the Nikkei 225, Japan’s leading index, rise by a strong 0.96%. The Topix, a broader measure, rose by 0.58%.
The Kospi gained 0.62% in South Korea and small-cap Kosdaq also experienced some volatility, moving up by 0.36%.
The S&P/ASX 200 index in Australia increased by 0.26 percent.
Indian Markets on the Edge
The benchmark Indian stock indices Sensex & Nifty are the main focus of Monday’s news.
Geopolitical tensions have taken a worrying turn after Iran informed Oman and Qatar, who were acting as mediators, that they would not be open to negotiations for a ceasefire if Israel was attacking.
Reuters also reported that Iran stated it didn’t seek US involvement in brokering a ceasefire.
Brent crude prices rose above $75 per barrel on the back of this news.
Donald Trump, the US president, suggested the fight could continue until a deal is made between Iran and Israel.
Gift Nifty, which was up 51.60 or 0.21 per cent at 24,779, indicated that Indian stocks could have a positive start despite the headwinds.
Futures prices are up on US markets after the Friday selloff
US equity futures rose during the early Asian hours of trading, which suggests some stabilization following a steep sell-off last Friday on Wall Street.
Energy prices rose in response to Israel-Iran’s attacks. This added yet another layer of complexity at a moment of increased geopolitical unrest.
The Dow Jones Industrial Average fell 769.83, or 1.79 %, on Friday to finish at 42197.79. S&P500 dropped by 1.13%, closing at 5,976.97. Nasdaq Composite fell by 1.30% and settled at 19,40683
The post Asian Markets Open: Positive Start for Nikkei, Sensex in the spotlight as Oil Tops $75 will be updated as new information is revealed
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