Asian Stocks Recover Despite Middle East Tensions

Asian Markets Show Signs of Recovery

Asian stock markets bounced back on Monday. This happened after a rough week due to rising tensions between Israel and Iran. Investors remain careful. They worry about a long conflict in the Middle East. Such a conflict could disrupt oil supplies, increase inflation, and affect global monetary policies.

Key Market Changes

• Brent crude prices rose by up to 5.5%.
• The Japanese yen weakened a bit.
• Bloomberg’s dollar index saw a slight increase.

Investors are also looking forward to interest rate decisions from major central banks. These include the US Federal Reserve and the Bank of Japan.

Indian Markets Start Strong

India’s Nifty50 and BSE Sensex opened higher on Monday. This shows some optimism despite global concerns.

• At 9:17 AM, Nifty50 was at 24,790.30, up by 72 points (0.29%).
• BSE Sensex stood at 81,337.74, gaining 219 points (0.27%).

Analysts warn that international issues could keep pressure on the markets. Sector-specific trends will likely drive market movements throughout the day.

Japan: Nikkei Recovers as Yen Weakens

Japan’s Nikkei 225 rose about 0.8% at Monday’s open. This partially made up for Friday’s losses. The Japanese yen, usually a safe-haven asset, fell slightly. Investors seem to prefer higher-yielding assets despite ongoing geopolitical risks.

Asia-Pacific: Regional Stocks Stabilize Despite Oil Concerns

The broader Asian equities index went up by about 0.2%. Investors are cautiously buying into the dip. Analysts warn of continued volatility, especially in markets that depend heavily on energy.

Wolf von Rotberg, an equity strategist at Bank J. Safra Sarasin, said: “Markets should prepare for a long period of uncertainty. Hedging against oil supply-chain disruptions is wise. This can be done through energy exposure and gold, which may continue its upward trend.”

Global Outlook

Investors are also dealing with other challenges. These include:

• Fragile global trade ties.
• Possible tariff hikes under President Trump.
• The ongoing Russia-Ukraine war.
• Rising political unrest in the US amid nationwide protests.