Asian stocks held firm on Wednesday while oil prices lingered near multi-week lows, as a tentative ceasefire between Israel and Iran continued to support investor sentiment, reported news agency Reuters. Though risks of renewed hostilities remain, the fragile truce has helped soothe market nerves after weeks of geopolitical turbulence.Japan’s Nikkei and Australia’s ASX 200 were little changed, while Taiwan’s Taiex gained 1 per cent. Hong Kong’s Hang Seng rose 0.6 per cent and Chinese blue-chip stocks dipped 0.1 per cent. Broader market sentiment was steady, with the MSCI world stock index hovering near record highs.The positive momentum was underpinned by easing oil prices.Brent crude fell nearly 7 per cent to $67.14 per barrel, while US benchmark West Texas Intermediate dropped 6 per cent to $64.37, extending Tuesday’s losses, reported news agency AFP. This marks two consecutive days of steep declines as markets reacted to signs that oil supply routes in the Middle East remain unaffected. Analysts said the fall was also driven by US President Donald Trump’s claim that China may resume buying Iranian oil, further easing fears of a supply crunch.“The de-escalation seems to be doing better,” said Art Hogan, chief market strategist at B Riley Wealth, as quoted by AFP. Crude prices, now below pre-conflict levels, are seen as reducing inflationary risks and could open space for central banks to consider interest rate cuts.The drop in oil prices also pushed US Treasury yields lower. The 10-year yield fell to 4.29 per cent, and the two-year yield slipped to 3.81 per cent, signalling rising expectations of a policy pivot, reported AP.On Wall Street, stocks continued their rebound on Tuesday. The S&P 500 rose 1.1 per cent, the Dow gained 1.2 per cent, and the Nasdaq jumped 1.4 per cent, placing all three indices within reach of their all-time highs. European markets also rallied, with Paris and Frankfurt posting solid gains, though London closed flat due to losses in oil majors.In currency markets, the dollar weakened, falling 0.1 per cent to 144.70 yen, while the euro rose to $1.1625, its highest level since October 2021. The euro/pound exchange dropped to 85.24 pence from 85.60 pence.With energy costs easing and geopolitical risks contained for now, markets appear to be pricing in a smoother path ahead, though investors remain cautious of any flare-up that could reverse the recent optimism.
