· Asian shares rebounded on Tuesday as investors’ reassessed the risk of an all-out conflict between the United States and Iran, while Wall Street battled back to the black as tech stocks climbed.
MSCI’s broadest index of Asia-Pacific shares outside Japan added 0.7%, recouping almost all of Monday’s losses.
· Japanese shares rebounded on Tuesday, with tech and domestic demand-oriented sectors leading the gains, as investors were relieved at the absence of fresh sabre rattling between the United States and Iran.
The Nikkei share average rose 1.60% to 23,575.72, recovering much of its losses posted in the previous session, though it failed to break above a resistance from 25-day moving average at 23,614.
In a positive sign for bulls, the broader Topix gained 1.62% to 1,725.05, already closing the chart gap made during the New Year holidays in just one day.
The mood calmed a little as there was no new aggression after Iran and the United States traded threats following a U.S. air strike killing a top Iranian commander, with Wall Street ending in positive territory on Monday.
· China’s benchmark index closed at its highest level in more than eight months on Tuesday, resuming a rally prompted by hopes of a brighter trade outlook and more policy support, as worries over Middle East tensions eased.
The Shanghai Composite index ended 0.69% higher at 3,104.80, its highest close since April 25, 2019. ** The country’s blue-chip CSI300 index gained 0.75% to its highest close since Feb. 5, 2018.
· European shares opened higher on Tuesday amid an easing of concerns over geopolitical tensions in the Middle East.
The pan-European Stoxx 600 climbed 0.4% at the start of the trading session, with tech stocks jumping out to 0.9% gains as all sectors and major bourses headed into the green.
Market focus is largely attuned to geopolitical developments following Washington's targeted killing of Iran's top military commander Qasem Soleimani in Iraq. Equity markets fell the past two sessions amid a flight to safety, but look to be changing course as Monday passed with no new escalation in tensions.
Reference: Reuters, CNBC
Thai
Eng