Updated
Updated · Reuters · Jun 12
Asian Stocks Rally as Nikkei Jumps 4.3% and Oil Sinks to 2-Month Lows
Updated
Updated · Reuters · Jun 12

Asian Stocks Rally as Nikkei Jumps 4.3% and Oil Sinks to 2-Month Lows

3 articles · Updated · Reuters · Jun 12

Summary

  • South Korea’s KOSPI surged 8.3%, Japan’s Nikkei gained 4.3% and Australian shares rose 1.8% as investors bet a Middle East peace deal could be signed within days.
  • WTI crude fell 1.9% to $86.08 and Brent dropped 1.5% to $89.08, extending overnight losses and easing fears that the three-month war will keep driving inflation higher.
  • Treasury yields and the dollar slipped as traders cut expectations for another Federal Reserve hike, with October hike pricing falling to 36% from 51%.
  • Trump said negotiations with Iran had reached the highest levels of its leadership, though earlier bursts of optimism had failed to produce a deal and rattled markets.

Insights

As oil prices fall on peace talks, what major geopolitical risks are global markets now ignoring?
How will a fragile peace deal reshape Japan's profound energy dependence on the Middle East?
With Iran and Israel denying a deal, is the market's surge built on false hope from Washington?