· World shares hit a record high on Friday as relief over the de-escalation of U.S.-Iranian tensions prompted investors to bet on faster global growth, especially in the technology sector.
Equities markets quickly erased losses that followed missile attacks from Iran targeting U.S. forces in Iraq, as the two countries moved to defuse the tensions.
MSCI’s broadest gauge of the world’s stocks in 49 countries .MIWD00000PUS rose modestly to hit an all-time high and its index of Asia-Pacific shares outside Japan .MIAPJ0000PUS gained 0.44% to its best levels since June 2018.
· Japanese shares rose on Friday as demand for riskier assets increased, buoyed by de-escalation of diplomatic tension in the Middle East and hopes that the so-called Phase 1 U.S.-China trade agreement will boost corporate earnings.
The benchmark Nikkei index ended up 0.47% at 23,850.57 points. The index rose 0.82% in a week of volatility when a Wednesday Iranian missile strike on U.S.-led forces in Iraq rippled through global financial markets.
The attack, which followed the U.S. killing of a prominent Iranian general last week, sparked fears of wider conflict.
However, global equity markets quickly stabilised after both the United States and Iran signalled the desire to avoid war.
Market focus consequently returned to the signing of a trade deal between the United States and China to defuse a months-long trade war, which would reduce risk in the global economic outlook.
· China’s benchmark equity indexes edged lower on Friday, but posted their sixth consecutive weekly gain against a backdrop of easing Mideast tensions and signs of economic recovery, and ahead of the signing of a Sino-U.S. trade deal next week.
At the close, the Shanghai Composite index was down 0.08% at 3,092.29. It rose 0.28% for the week, its sixth straight weekly gain.
· European stocks opened higher on Friday as world markets rally on the back of easing tensions in the Middle East.
The pan-European Stoxx 600 climbed 0.3% at the start of the session, with travel and leisure stocks surging 1.7% as almost all sectors entered positive territory.
Reference: Reuters, CNBC
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