U.S. President Donald Trump said the war with Iran could end quickly as Tehran reviewed a U.S. peace proposal that, according to sources, would formally bring the conflict to a close while leaving unresolved Washington’s key demands for Iran to halt its nuclear programme and reopen the Strait of Hormuz.

Saudi Arabia’s benchmark index rose 0.8%, with ACWA Power surged 10%, while Elm Co, also, jumped 10% following a steep rise in first-quarter profit.

Meanwhile, Brent crude futures fell $4.31, or 4.3%, to $96.96 a barrel by 1242 GMT.

Dubai’s main share index gained 0.6%, led by 5.6% surge in toll operator Salik and a 7.2% surge in Emirates Central Cooling Systems after upbeat quarterly earnings.

Meanwhile, the United Arab Emirates said on Wednesday that its ties and its international and defence partnerships were a “purely sovereign matter,” rejecting an earlier statement by Iran that Abu Dhabi’s cooperation with the U.S. threatened Iran’s security and national interests.

In Abu Dhabi, the index finished flat.

The Qatari index added 0.6%, with petrochemical maker Industries Qatar gaining 1.6%.

Egyptian bourse was closed for a public holiday.

Benchmark copper on the London Metal Exchange was little changed at $13,390.5 a metric ton in official rings.

Prices of the metal used in the power and construction industries had touched $13,462 on Wednesday, the highest since April 23.

U.S. President Donald Trump predicted a swift end to the war with Iran as Tehran considered a U.S. peace proposal that sources said would formally end the conflict.

“The market is now pausing as traders wait for further clarity on the diplomatic track between the U.S. and Iran, with Tehran reviewing a new proposal that could outline a path toward reopening the Strait of Hormuz,” Britannia Global Markets analysts said.

“With markets awaiting the next round of geopolitical headlines and macro signals, trading is likely to remain choppy.”

A softer dollar reduces the cost of dollar-denominated metals for buyers holding other currencies, which can support demand.

Signs of healthy demand in China are helping to underpin copper prices.

Copper stocks in warehouses monitored by the Shanghai Futures Exchange have more than halved to 192,025 tons since mid-March.

Meanwhile, the Yangshan copper premium, a gauge of China’s appetite for importing copper, is up more than 60% since early March.

Elsewhere, battery material lead touched $1,990 a ton for its highest since February 27. It was last up 0.1% at $1,980 a ton.

Traders said large holdings of lead warrants and a 40% plus holding of lead contracts maturing in May were behind the gains. The concentration of holdings suggests that much of the LME’s deliverable lead is tied up ahead of the May expiry, heightening the risks of a supply squeeze.

In other metals, aluminium slipped 0.4% to $3,509 a ton, zinc rose 0.9% to $3,431, tin was up 0.9% at $54,295 and nickel retreated 0.8% to $19,030.

The U.S. and Iran are edging toward a limited, temporary agreement to halt their war, sources and officials said on Thursday, with a draft framework that would stop the fighting but leave some contentious issues unresolved.

Oil prices extended losses, sliding around 2% to below $100 a barrel in volatile trade.

The closure of the Strait of Hormuz, which typically carries a fifth of global oil supplies, has caused major disruptions worldwide.

Analysts expect supplies to tighten further in the coming weeks even if a peace deal is reached, as it will take time for shipments from the Gulf to resume and reach refiners globally.

A sustained rise in crude prices could fuel inflation in India, pressure the rupee, worsen the current-account balance and complicate the government’s fiscal arithmetic.

“After a long time, markets finally had some positive news to react to, but the underlying mood remains nervous over inflation, fiscal pressures and heavy state borrowing,” Kruti Chheta, Mumbai-based fund manager and fixed income analyst at Mirae Asset Investment Managers (India), said.

India’s benchmark 6.48% 2035 bond yield ended at 6.9328% versus 6.9219% on Wednesday, when it fell 10 basis points.

Bond traders awaited the auction of a new 10-year bond a day later.

Rates

India’s overnight index swap rates were mixed as the market awaited cues on the peace deal.

One-year swap rate down 1.75 bps at 5.87%, while two-year swap rate was up 2.25 bps at 6.09%. Most liquid five-year OIS rate rose 2 bps to 6.5050%.

The CSE All Share index settled up 1.1% at 22,997.86

Industrial Asphalts (Ceylon) PLC and SMB Finance PLC were the top percentage gainers on the CSE All Share index, rising 40% and 37.5%, respectively

Trading volume on the CSE All Share index jumped to 514.5 million shares from 377 million in the previous session

The equity market’s turnover rose to 5.28 billion Sri Lankan rupees ($16.4 million) from 4.13 billion rupees in the previous session, according to exchange data

Foreign investors were net sellers, offloading stocks worth 269.8 million rupees, while domestic investors were net buyers, purchasing shares worth 5.03 billion rupees, the data showed

The benchmark palm oil contract for July delivery on the Bursa Malaysia Derivatives Exchange slid 41 ringgit, or 0.9%, to 4,538 ringgit ($1,161.50) a metric ton at the close.

Crude palm oil prices traded lower following a long liquidation in Chicago soyoil, said Anilkumar Bagani, commodity research head at Sunvin Group, a Mumbai-based brokerage.

“A stronger Malaysian ringgit, higher production in April and palm oil narrowing its discount over gas oil also pressured prices,” he said, adding that the sharp fall in crude oil futures on Wednesday night also contributed to the decline.

A Reuters survey last Monday showed that Malaysia’s palm oil inventories and exports likely fell in April, while production was expected to have surged.

The Malaysian Palm Oil Board is expected to release its monthly supply and demand data on May 11.

Dalian’s most-active soyoil contract fell 1.08%, while its palm oil contract shed 1.51%. Soyoil prices on the Chicago Board of Trade were down 0.56%.

Palm oil tracks the price movements of rival edible oils, as it competes for a share of the global vegetable oils market.

The ringgit, palm’s currency of trade, strengthened 0.33% against the dollar, making the commodity more expensive for buyers holding foreign currencies.

Malaysian palm oil prices are likely to rise about 12% to 5,200 ringgit ($1,316) a ton by mid-July, as higher energy prices from the U.S.-Israeli war on Iran boost biodiesel demand and tighten supplies, analyst Dorab Mistry said.

The Nifty 50 fell 0.02% to 24,326.65, while the BSE Sensex edged 0.15% lower to 77,844.52.

Both benchmarks had jumped 1.2% on Wednesday and moved in a narrow range on Thursday, swinging between gains of 0.5% and losses of 0.3%.

Other Asian markets also advanced after reports suggested Iran and U.S. were nearing a deal to end the conflict.

Brent crude, which tumbled 7.8% in the previous session, fell 2.4% to about $99 a barrel on Thursday. India is the world’s third-largest oil importer.

“Recent developments from the Middle East suggest that both U.S. and Iran are looking for a solution to resolve the war, which is a big positive for domestic equities,” said Siddhartha Khemka, head of research of wealth management at Motilal Oswal Financial Services.

“However, the gains in domestic markets have been tempered as a deal is still not a reality, while currency pressures continue to deter foreign inflows,” Khemka said.

Eleven of the 16 major indexes gained.

Auto index jumped 1.9%, led by a 2.8% rise in Bajaj Auto after upbeat quarterly results.

Mahindra & Mahindra added 2.1%, extending its three-session post-results gain to 8.5%.

Hero MotoCorp gained 3.4%, with brokerages citing improving demand, stronger electric-vehicle positioning and exports as near-term earnings support.

PSU banks and IT declined 0.5% and 0.8%, respectively, after strong gains on Wednesday.

Broader small-caps and mid-caps rose 0.9% and 1.1%.

One97 Communications climbed 7.8% after the Paytm operator swung to a March-quarter profit.

Godrej Consumer fell 5.3% despite higher quarterly profit, after multiple brokerages flagged near-term margin risks from input-cost inflation.

Brent crude fell below $100 per barrel, down nearly 3% and reversing course after touching a peak of $102.5 on the day, as the United States and Iran edge toward a temporary agreement to halt their war, sources and officials said.

The retreat in oil prices lifted Asian currencies broadly, including the rupee, which strengthened by as much as 0.5% before ending the session at 94.25, sharply stronger than its intra-day low of 94.9025.

The pullback in crude prices offers much-needed relief for India, the world’s third-largest oil importer. Surging oil prices since the start of the Middle East war had prompted economists to forecast a weaker rupee, revise inflation expectations higher and lower India’s economic growth outlook.

Dollar-Indian rupee forward premiums, the cost of hedging currency exposure, retreated, with the one-year forward implied yield slipping to a three-week low of 2.97%.

There was very heavy selling interest in the NDF market, which likely means short rupee wagers were unwound, a trader at a foreign bank said.

A second trader at a private lender added that a large Indian state-run bank and a U.K. headquartered bank were seen selling dollars heavily in the local spot market.

The one-month dollar-rupee 25-delta risk reversal, a gauge of options market sentiment, signalled reduced appetite for bearish rupee wagers.

“The improvement in global investor risk sentiment and drop in energy prices is providing a tailwind for emerging market currency performance,” analysts at MUFG said in a note.

“Latest developments add to investor confidence that the US and Iran continue to make progress to find a diplomatic solution,” the note said.

Asian currencies were up between 0.2% and 0.6%, while the dollar index eased 0.2% to 97.87.

Global equities benefited from the improved risk mood, with MSCI’s gauge of Asia pacific stocks gaining more than 2%.

Rupee's Performance Against US Dollar Since 04 March 2025

The Pakistani rupee strengthened against the US dollar during trading in the inter-bank market on Thursday.

At close, the local currency settled at 278.71, a gain of Re0.01 against the greenback.

On Wednesday, the local unit closed at 278.72.

Globally, the US dollar remained on the defensive on ​Thursday as hopes for a de-escalation in the Iran-US war supported oil-exposed currencies, while Tokyo ‌resumed its verbal intervention in support of the yen, keeping speculators cautious.

Iran said on Wednesday it was reviewing a US peace proposal that sources indicated would formally end the war but leave unresolved key US demands that Iran ​suspend its nuclear program and reopen the Strait of Hormuz.

Analysts were worried that any agreement ​that did not open the vital waterway to shipping would likely see oil ⁠prices rise again, with Brent edging 0.8% higher in early trading.

Hopes for de-escalation had seen oil prices slide overnight, easing inflationary fears and pulling down Treasury ‌yields ⁠as markets pared back the risk of U.S. rate hikes.

That left the dollar index back at 97.950 and well short of last week’s top of 99.092.

The pullback in oil had boosted the euro, given the continent is far more reliant on imported oil than the United States, and it was ​0.1% firmer at $1.1757 having ​touched a two-week top ⁠of $1.1797 overnight.

Oil prices, a key indicator of currency parity, extended losses on Thursday, sliding around 2% to below $100 a barrel on renewed hopes for a US-Iran peace deal that could bring a gradual reopening of the Strait of Hormuz.

Brent crude futures fell $1.95, or 1.93%, to $99.32 a barrel by 0912 GMT.

US West Texas Intermediate dropped $1.93, or 2.03%, to $93.15.

The pan-European STOXX 600 was little changed at 623.59 points, as of 0810 GMT.

Most major regional bourses traded higher, with France’s CAC 40 up 0.3%, while London’s FTSE 100 fell 0.5%.

The European benchmark’s rally on Wednesday left it about 2% below levels seen before the start of the Middle East war.

Energy-dependent European markets have lagged global peers since the conflict began, while AI-driven optimism has boosted other major indexes to record highs.

US President Donald Trump predicted a swift end to the war as Tehran considered a US peace proposal that is expected to end the conflict while leaving Iran’s nuclear programme and the reopening of the Strait of Hormuz unresolved.

“There’s been hardly any instances where the US stock market has been trading with a bearish bias, whereas for Europe throughout the second half of (April), it’s been a continuous bearish bias on the back of worsening talks.”

Oil major Shell dipped 3.9% after it reported first-quarter profit that beat expectations, but reduced the pace of its quarterly share buyback programme.

Peer BP was down 1.8%, while the energy index fell 1.2%.

Luxury shares gained 2.5% after being under pressure this year.

LVMH, Hermes and Kering were up between 2.5% and 2.9%.

Spirits group Campari tumbled 11% after the Italian firm’s first-quarter revenue was below expectations.

Peers Diageo and Pernod Ricard lost over 1%, while the beverages index dropped 1.1%.

Euro zone financial integration has made steady progress in the past few years but the region’s equity markets remain fragmented, the European Central Bank said in a report.

Among other movers, Rheinmetall shares dropped 3.1%.

The German defence firm reported first-quarter results and said it had submitted a bid to buy German Naval Yards Kiel.

Persil maker Henkel jumped 4% after the German firm met sales expectations for the first quarter.

Shares of Siemens Healthineers tumbled 3.7% after the medical-tech company cut its full-year outlook due to structural changes in the Chinese market and pronounced inflation expectations.

Similarly, 10-gram gold was sold at Rs425,893 after it increased by Rs6,687, according to rates shared by the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA).

On Wednesday, gold price per tola reached Rs488,962 after a gain of Rs11,100 during the day.

The international rate of gold was up by $78 to reach $4,744 per ounce (with a premium of $20).

Meanwhile, the price of silver increased by Rs373 to reach Rs8,445 per tola.

The won weakened, while the benchmark bond yield fell.

The benchmark KOSPI was up 3.02 points, or 0.04%, at 7,387.58 as of 01:53 GMT, after rising as high as 7,532.88 earlier in the day.

Among index heavyweights, chipmaker Samsung Electronics rose 0.38%, while peer SK Hynix lost 0.06%.

Battery maker LG Energy Solution slid 1.66%.

Hyundai Motor and sister automaker Kia Corp were up 4.64% and up 2.65%, respectively.

Steelmaker POSCO Holdings added 2.77%, while drugmaker Samsung BioLogics rose 0.07%.

Citi Research on Thursday upgraded its Kospi target to 8,500 from 7,000 previously, reflecting solid memory earnings upside as well as strong fiscal stimulus with the Korean government’s push for corporate value enhancement.

Of the total 895 traded issues, 376 shares advanced, while 485 declined. Foreigners were net sellers of shares worth 4,033.2 billion won ($2.78 billion). The won was quoted at 1,449.9 per dollar on the onshore settlement platform, 0.03% lower than its previous close at 1,449.4.

In offshore trading, the won was quoted at 1,448.7 per dollar, down 0.3% on the day, while in non-deliverable forward trading, its one-month contract was quoted at 1,447.1.

The KOSPI has risen 75.30% so far this year.

The won has weakened 0.7% against the dollar so far this year. In money and debt markets, June futures on three-year treasury bonds gained 0.22 point to 103.80.

The most liquid three-year Korean treasury bond yield fell by 6.0 basis points to 3.534%, while the benchmark 10-year yield fell by 5.7 basis points to 3.878%. ‑Reuters

The S&P/ASX 200 index gained 1% to 8,880.30 by 0025 GMT, its highest level since April 22.

The benchmark finished 1.3% higher on Wednesday. Iran said overnight that it was reviewing a US peace proposal that sources told Reuters would formally end the war, while leaving key US demands that Iran suspend its nuclear program and reopen the key Strait of Hormuz unresolved.

That sent crude prices to two-week lows before they rebounded on Thursday.

Australia has been contending with stubborn inflation stemming from the oil shock since the start of the conflict in the Middle East.

Back in Sydney, miners surged 3.1% to touch a two-month peak, benefiting from higher iron ore and copper prices on hopes of a US-Iran peace deal.

BHP, Rio Tinto and Fortescue gained 3.9%, 2.7%, and 2.2%, respectively.

Among gold miners, sector leaders Northern Star Resources and Evolution Mining rose 1.8% and 4.4%, respectively. Financials advanced 0.6% to hit a two-week high.

Top lender Commonwealth Bank of Australia touched their highest level since late April, on pace to book a third straight day of gains.

Healthcare stocks and the industrials sub-index gained 0.6% each.

Energy stocks were an outlier on the benchmark, falling to their lowest since late April in parallel with the drop in oil prices.

Index majors Woodside Energy and Santos slipped 4.3% and 2.7%, respectively.

Among individual stocks, Tabcorp crashed as much as 28.3% after the country’s financial crimes watchdog launched a probe into the top gaming and wagering firm over concerns about its ability to manage money-laundering and terrorism-financing risks.

In New Zealand, the benchmark S&P/NZX 50 index gained 0.8% to 13,247.19, its highest since early April.

The benchmark Indian 6.48% 2035 bond yield is expected to drift within the 6.90%-6.95% range, according to a trader with a private bank, after closing at 6.9219% on Wednesday.

The yield posted its biggest single-day decline in four weeks on Wednesday.

Bond yields move inversely to prices.

“The continuous back and forth in the US-Iran issue has been a major pain point rather than the war itself, and we should see some of the gains getting washed away today,” the trader said.

Oil prices rose in Asian hours on Thursday after US President Donald Trump said it was “too soon” for face-to-face talks with Tehran, while a senior Iranian lawmaker said the US proposal was more of a wish list than a reality.

The benchmark Brent crude was around $101 per barrel, after hitting a two-week low on Wednesday.

Iran was reviewing a US peace proposal that sources said would formally end the war while leaving unresolved the key US demands that Iran suspend its nuclear program and reopen the Strait of Hormuz.

Even as a ceasefire prevails, the strait, which carries about one-fifth of the world’s oil and natural gas supply, has been mostly shut since the war began on February 28.

Market participants also await the auction of a new 10-year debt on Friday, with New Delhi looking to raise 340 billion rupees ($3.59 billion) through this note, which will replace the existing benchmark paper in the coming weeks.

It ended the previous session at 32.30 per dollar, as per LSEG data.

A cooling in oil prices also eased the worst fears of future inflation, pulling bond yields lower and somewhat lessening pressure for hikes in interest rates.

“Economic, political, and strategic constraints leave the US strongly incentivised to preserve the ceasefire and seek a negotiated resolution by late May or shortly thereafter,” said Madison Cartwright, a senior geo-economics analyst at CBA.

“There is no military solution available to the US, so de-escalation remains the most attractive pathway.”

That prospect was a positive for the Aussie, which is often used by investors as a proxy for risk, and nudged it up 0.1% to $0.7243.

It climbed 0.7% on Wednesday to hit a four-year top of $0.7277, with the next major barriers being peaks from 2022 at $0.72825 and $0.7593.

The kiwi dollar firmed to $0.5960, after rising 1.1% the previous session to reach a two-month high of $0.5991.

Immediate support lies at $0.5929, with resistance at $0.6012.

The overnight retreat in oil prices also cheered bonds as it lessened the risk of runaway inflation and further increases in rates.

Yields on Australian 10-year notes were back at 4.921% after hitting a top of 5.087% last week.

Markets imply around a 20% chance the Reserve Bank of Australia will hike again in June, having already lifted rates by a total 75 basis points to 4.35% over its last three meetings.

The probability of a move in August sits around 68%, and rates of 4.60% are almost fully priced in for September.

The improvement in global risk sentiment helped offset March data showingAustralia’s first goods trade deficit since 2017 as a boom in data centres sucked in imports of processing equipment.

Fuel imports also surged as the Gulf conflict lifted prices and the Australian government scrambled to secure extra shipments of petrol and diesel to meet demand.

The swing to a deficit implies net exports will drag on economic growth in the quarter, though that will be balanced in part by a rise in business investment as data centres get built.

The benchmark palm oil contract for July delivery on the Bursa Malaysia Derivatives Exchange slid 38 ringgit, or 0.83%, to 4,541 ringgit ($1,161.38) a metric ton in early trade.

Iran said on Wednesday it was reviewing a US peace proposal that sources said would formally end the war but leave unresolved key US demands that Iran suspend its nuclear program and reopen the Strait of Hormuz.

The onshore yuan firmed slightly to 6.8033 per dollar in early trade, its strongest since Feb. 14, 2023, while the offshore yuan also touched 6.8033, the highest since Feb. 10, 2023.

“The USD had softened quite considerably on news that the US and Iran were on a fresh proposal to end the war on Wednesday, in line with our suspicions that Trump may want to wrap up his conflict in Iran before the Trump-Xi summit or risk another delay,” analysts at Maybank said in a note.

US President Donald Trump and Chinese President Xi Jinping are scheduled to meet next week in Beijing.

Further de-escalation in the Middle East, such as Iran accepting the US-proposed deal and a gradual reopening of the Strait of Hormuz, could continue to support gains in Asian currencies, MUFG analysts said in a note.

“We maintain a constructive view on CNY, MYR and SGD, where both fundamentals and technicals point to further upside against the dollar.”

 The spot yuan opened at 6.8090 per dollar and was last trading at 6.8064 as of 0214 GMT, 69 pips firmer than the previous late session close.

Prior to the market opening, the People’s Bank of China set the midpoint rate at 6.8487 per dollar, its strongest since March 24, 2023, though 400 pips weaker than a Reuters’ estimate. Spot yuan is allowed to trade 2% either side of the fixed midpoint each day.

The offshore yuan traded at 6.8053 yuan per dollar, up about 0.13% in Asian trade.

Overnight data showed US private-sector employment rose more than expected in April. Markets are now turning to the nonfarm payrolls report due later this week, a key test of whether the economy remains resilient enough to keep Federal Reserve policy on hold or if signs of labor-market cooling will revive calls for rate cuts.

The dollar index, which measures the greenback against a basket of six currencies, was 0.082% lower at 97.97.

The most-traded September iron ore contract on China’s Dalian Commodity Exchange traded 0.25% higher at 814 yuan ($119.61) a metric ton as of 0303 GMT. The benchmark June iron ore on the Singapore Exchange eased 0.12% to $110.35 a ton.

Hot metal production is expected to peak in April, underpinning demand for iron ore, though rising prices have dampened transaction volumes, according to data compiled by LSEG and a note from the Shanghai Metals Market.

Easing upward resistance on iron ore prices amid steady destocking has reinforced market momentum, the note added.

Meanwhile, Singapore iron ore prices were pressured by lower energy costs after oil prices slumped nearly 7% on Wednesday, offering some relief from high shipping expenses.

Separately, workers striking over a pay dispute have halted mining since last week at two blocks of Guinea’s giant Simandou iron ore project operated by a consortium led by China’s Baowu Resources, four sources told Reuters.

Blasting, loading, hauling and dumping have stopped, although rail and port operations continue, according to a project consultant and two union representatives.

Simandou, home to the world’s largest untapped iron ore deposits, began exports in November after decades of delays and is expected to reach an annual capacity of 120 million metric tons of iron ore at peak output.

Other steelmaking ingredients on the DCE declined, with coking coal and coke losing 2.1% and 1.77%, respectively, tracking broader declines in energy market.

Steel benchmarks on the Shanghai Futures Exchange were mixed.

Rebar gained 0.46%, while hot-rolled coil and wire rod were little changed.

Stainless steel lost 1.62%.

Benchmark three-month copper on the London Metal Exchange fell 0.3% to $13,355 per metric ton by 0312 GMT.

Prices climbed to a near two-week high in the previous session as hopes of easing tensions in the Middle East provided relief to copper, a metal seen as a barometer of macroeconomic health and used widely in power and construction.

 The most-traded copper contract on the Shanghai Futures Exchange inched up 0.3% at 102,800 yuan ($15,092.67) per ton.

“The pullback in copper isn’t a sign of weakening demand, but rather a ‘momentum pause’ following Wednesday’s rally,” said Tim Waterer, chief market analyst, KCM Trade.

“Traders are essentially recalibrating for a world where the Strait of Hormuz isn’t permanently blockaded (should a peace deal emerge), and that is allowing for some healthy consolidation at these multi-week highs.”

Iran said on Wednesday it was reviewing a US peace proposal that sources said would formally end the war while leaving unresolved the key US demands that Iran suspend its nuclear program and reopen the Strait of Hormuz.

Oil prices rose about $1 in early trade on Thursday, rebounding from the previous day’s sharp losses, as investors weighed the prospects of the Middle East peace deal succeeding.

 Meanwhile, Federal Reserve officials said on Wednesday the ongoing US-backed war with Iran is raising the risk of a sustained inflation shock, with continued high oil prices and developing concerns about problems with global supply chains.

Among other LME metals, aluminium fell 0.8%, nickel lost 0.3%, lead inched down 0.1%, tin shed 1.4% and zinc held steady.

On the SHFE, aluminium lost 1.9%, nickel fell 3.5%, lead was down 0.4%, zinc inched up 0.3%, while tin rose 3.2%.

Economists in a Reuters poll had expected first quarter gross domestic product growth to reach 3.5%.

“The lingering effects of oil prices and (the impact) on supply chains will persist in the coming months, there are continuing challenges ahead,” Economic Planning Secretary Arsenio Balisacan told a press conference.

On a seasonally adjusted basis, the economy grew 0.9% quarter-on-quarter in the January-March period, lower than the 1.5% expansion forecast in the poll.

Balisacan said the slower expansion reflected the combined impact of “significant domestic and global challenges”, including delays in the passage and release of the 2026 budget and the effects of rising prices on domestic consumption.

Philippine annual inflation at 7.2% in April

He said the government would push to regain growth momentum in the months ahead and accelerate spending, including on infrastructure.

The growth target would be adjusted downwards due to global uncertainty, he added.

Household consumption growth also slowed to 3.3% on the year in the first quarter, compared to 3.8% in the previous three months.

Government spending rose 4.8%, compared to 3.7% in the previous quarter.

Investment growth declined to 3.3% compared to a year earlier, reflecting the sustained lack of investor confidence.

“Looking ahead, while global uncertainty remains elevated, we remain firmly focused on strengthening the country’s economic foundations and regaining stronger growth momentum in the succeeding quarters and further ensure budget support for various measures,” Balisacan said.

Annual inflation accelerated to a three-year high in April, data showed on Tuesday, as a surge in fuel costs stemming from the Middle East conflict raised the prospect of further monetary tightening.

Consumer prices rose 7.2% last month, the highest since March 2023, breaching the central bank’s forecast range of 5.6% to 6.4% for the month.

China’s blue-chip CSI300 Index edged up 0.2% by the lunch break, while the Shanghai Composite Index gained 0.3%. Hong Kong benchmark Hang Seng was up 1.6%.

The mood brightened after Iran said on Wednesday it was reviewing a US peace proposal that sources said would formally end the war but leave unresolved key US demands that Iran suspend its nuclear program and reopen the Strait of Hormuz.

“Despite the lack of a definitive resolution, defensive positioning has lowered the threshold for positive surprises to influence price action,” UBS strategist Rohit Arora said. Onshore energy shares fell 3.9%, the Coal Index dropped nearly 4.5%.

The 5G Communication Index led gains onshore, up 3.5%.

Hong Kong-listed tech majors were up 3.1%, following an overnight rally in their counterparts listed in New York. Alibaba shares jumped 4.3%.

China’s tourism sector saw a rise in trips during the May Day holiday, though official data released the day after the five-day break did not include spending figures that usually provide a fuller picture of consumption over the period.

Chinese liquor shares were up 1.1%, while food and beverage stocks edged up 0.4%.

Markets are watching closely for US-China developments as US President Donald Trump is set to meet Chinese President Xi Jinping in May on his first visit to China in eight years. (Reporting by Shanghai Newsroom; Editing by Rashmi Aich)  ‑Reuters

Sascha Uebel, the bank’s vice chairman and head of the works council, also said he would favour a move by the German government to increase its stake in Commerzbank to fend off a takeover by UniCredit.

Uebel said in a written statement of Orcel: “I’ve really had enough now! Where on earth are we? In the midst of a hostile takeover bid, he is now demanding that the board speak with him again, otherwise he won’t raise his offer?” “This is the board of a German DAX company, not circus ponies in a ring.

We MUST NOT entrust our bank to someone like that,“ Uebel said. Uebel’s comments are in response to remarks by the UniCredit CEO, reported by Boerse Online on Wednesday, that the Italian was open to reviewing the terms of his offer for Commerzbank should the German bank’s management “engage in a constructive, detailed dialogue.” UniCredit, which is Commerzbank’s largest shareholder, has argued that Commerzbank is not living up to its potential, while Commerzbank has said that it is working to stay independent.

Uebel also said he would support Berlin increasing its 12% stake in Commerzbank to undo the government’s botched sale of part of its holding in 2024 that resulted in UniCredit building its holding.

“It is not the capital market that elects the federal government, but we, the workers. In any case, it is important under no circumstances to accept the offer,” Uebel said.

The upward adjustment was partly due to the government approving a 400 billion baht ($12.39 billion) loan decree earlier this week, Bank of Thailand Governor Vitai Ratanakorn told reporters.

The previous GDP forecast was based on a 300 billion baht loan, he added. Inflation will be higher in the third quarter as a result of a subsidy package, he said.

Thailand will let energy prices move in line with market forces, plans support measures

The package is due to be launched in June, according to Finance Minister Ekniti Nitithanprapas.

Thai headline inflation rose 2.89% in April, the highest in more than three years as a result of higher energy costs, according to the Commerce Ministry.

For the full year, the Commerce Ministry forecasts inflation in the range of 1.5% to 2.5% this year, inside the central bank’s target range of 1% to 3%. ‑Reuters

The scheme will apply from July next year and not affect existing contracts, the government said.

Three liquefied natural gas export projects on the east coast operated by Origin Energy, Shell and Santos, respectively, will be affected by the reservation scheme.

In December, the government proposed a plan to reserve between 15% to 25% of gas.

“This is a carefully calibrated model which ensures that Australia’s national best interests are put first,” Energy Minister Chris Bowen told reporters.

“This is a policy which will obviously not please everyone - often good policy doesn’t - but it’s good policy.”

Bowen said the policy would only apply to prospective contracts and the spot market.

Pakistan seeks two LNG cargoes for May

It is intended to create a “modest oversupply” of gas in the domestic market to force down energy prices, he said.

“It’s going to put downward pressure on prices. And what it will also do is to a certain degree, disconnect Australian gas from spikes in international prices,” Bowen said.

Australia is one of the world’s largest LNG exporters and ships more gas overseas than it consumes domestically.

But most of the country’s large gas reserves are located in the northwest, far from the more populous southeast where demand is concentrated.

The state of Western Australia already has its own reservation scheme that requires offshore export projects to divert 15% of their gas to its local market.

‘Historic shift’ in gas policy

Resources Minister Madeleine King added the policy was part of broader gas market reforms that involve scrapping the Australian Domestic Gas Security Mechanism, a policy that allows the government to restrict exports from the three east coast LNG plants.

The government will also remove an agreement under which the three exporters committed to offer any uncontracted gas volumes to the domestic market on internationally competitive terms.

“Today is a very important and historic structural shift in Australia’s domestic gas market policy settings,” King said.

Shares in Santos, which operates the Gladstone LNG project in Queensland, fell 3% in afternoon trading. Origin Energy, which leads rival export consortium Australia Pacific LNG, was down 1.2%.

The declines came as energy stocks weakened broadly due to lower oil prices.

“A national 20% gas reservation scheme will help underpin manufacturing investment, energy transition and energy security for future generations,” Manufacturing Australia CEO Ben Eade said in a statement.

But think tank The Australia Institute said it was the “wrong solution” to address high energy prices, and instead called for a tax on gas exports.

The government recently ruled out plans for such a tax in next week’s federal budget over fears it could jeopardise relationships with Asian trading partners that send fuels such as gasoline and diesel to Australia.

Soybeans and corn dropped to the lowest in more than a week.

“Some of the strength we saw in agricultural markets was related to crude oil and the Iran war,” said one trader in Singapore.

“US drought has also been supporting wheat prices, and now there is some improvement in weather; rains are expected for winter crop areas.”

The most-active wheat contract on the Chicago Board of Trade (CBOT) lost 0.9% to $6.11-3/4 a bushel, as of 0355 GMT, soybeans gave up 0.5% to $ 11.89 a bushel and corn fell 0.6% to $4.65-1/2 a bushel. Soybeans slid to their lowest since April 28 while corn hit its weakest since April 27.

Rain is forecast to hit some dry US wheat zones this week, although traders said precipitation may come too late to save the crop in some areas.

The US Department of Agriculture’s weekly report said 31% of the nation’s winter wheat crop was in good to excellent condition, up from 30% last week but still the lowest for this time of the year since 2023.

Optimism over a possible end to the war in the Middle East is adding pressure on soybeans, corn and wheat futures.

However, oil prices rose about $1 on Thursday, as investors weighed the prospects of a Middle East peace deal succeeding.

Iran said it was reviewing a US peace proposal that sources said would formally end the war while leaving unresolved the key US demands that Iran suspend its nuclear programme and reopen the Strait of Hormuz.

The war has driven fluctuations in oil prices, strongly influencing agricultural markets, as corn and soybean oils are widely used as inputs for production of alternative fuels.

The market opened on a weak note, with the index dropping to an intra-day low of 171,541.04 during early trading hours. However, the decline proved short-lived as strong buying interest emerged soon helping the index recover sharply.

During the mid-session, the benchmark index maintained an overall upward trajectory as the index climbed steadily and touched an intra-day high of 173,274.54 points.

At close, the benchmark index settled at 172,894.27, up by 1,189.52 points or 0.69%.

“The local bourse opened on a positive note, carrying forward the bullish momentum from the previous session as the benchmark index climbed to an intra-day high of 1,569 points. However, profit-taking during the mid-session triggered volatility, trimming a significant portion of the early gains and dragging the index to an intra-day low of 163 points,” brokerage house Topline Securities said in its post-market report.

Index-heavy stocks, including UBL, FFC, LUCK, OGDC, and MARI, remained the key drivers of the rally, collectively contributing 735 points to the benchmark index, Topline said.

“The momentum continues as global and domestic factors align in favour of the bulls,” said Behtari Capital.

On Wednesday, PSX witnessed a powerful bullish session as easing geopolitical tensions between the United States and Iran, coupled with a sharp decline in global oil prices, triggered aggressive buying across the board, significantly lifting investor sentiment. The KSE-100 surged by 6,962.29 points or 4.23% to close at 171,704.76 points.

Globally, Asian stocks soared to record highs on Thursday while the US dollar slipped and oil nursed steep ​losses as traders embraced the prospect of a peace deal in the Middle East, although the fate of the critical Strait of ‌Hormuz remains unresolved.

Japan’s Nikkei returned from a long holiday to cross 62,000 for the first time, catching up on a blistering AI-led rally after robust earnings that have also catapulted South Korean and Taiwan stocks to records.

MSCI’s broadest index of Asia-Pacific shares outside Japan was up 1%, hitting another all-time high. The index is up 7% so far this ​week.

Iran said it was reviewing a peace proposal that sources said would formally end the war ​while leaving unresolved the key U.S. demands that Iran suspend its nuclear program and reopen the Strait of Hormuz, whose closure has sent oil prices surging.

A ​potential deal to end the war, which started at the end of February, sent oil prices sliding nearly 8% on Wednesday. Brent crude was a touch higher at $102.11 a barrel in early Asian hours on Thursday.

Federal Reserve officials said the war is raising the risk of ‌a sustained ⁠inflation shock, with continued high oil prices and developing concerns about problems with global supply chains.

Meanwhile, the Pakistani rupee strengthened against the US dollar during trading in the inter-bank market on Thursday. At close, the local currency settled at 278.71, a gain of Re0.01 against the greenback.

Volume on the all-share index decreased to 986.97 million from 1,202.17 million recorded in the previous close.

The value of shares declined to Rs52.70 billion from Rs63.00 billion in the previous session.

B.O.Punjab was the volume leader with 86.33 million shares, followed by F. Nat.Equities with 65.96 million shares, and Hascol Petrol with 44.74 million shares.

Shares of 490 companies were traded on Thursday, of which 290 registered an increase, 165 recorded a fall, and 35 remained unchanged.

However, bankers cautioned that crude has recovered from its ‌lows, while uncertainty over whether current US–Iran optimism will translate into a breakthrough is likely to cap the rupee’s upside.

The rupee is expected to open in the 94.54-94.58 ​range, traders said, after settling 0.7% higher at 94.61 on Wednesday.

Brent ​crude hovered near $101 a barrel, after sliding nearly 8% on ⁠Wednesday on reports that the United States and Iran were nearing a ​peace deal.

However, optimism cooled after U.S. President Donald Trump said it was “too soon” ​for face-to-face talks with Tehran, while a senior Iranian lawmaker said the U.S. proposal was more of a wish list than reality. Prices partly recovered from the session ​low of $96.75.

“The degree of optimism oscillated through the day in response to ​various statements from both sides,” ANZ Bank said in a note.

“The situation remains highly fluid ‌with ⁠intraday volatility likely to remain high.”

An Iranian foreign ministry spokesperson cited by Iran’s ISNA news agency said Tehran would convey its response. Trump said he believed Iran wanted an agreement.

US equities rallied on Wednesday, while U.S. Treasury ​yields and the ​dollar dropped.

A “large part” ⁠of the optimism around a potential U.S.–Iran deal was priced in late yesterday, a currency trader at a private ​sector bank said. From here, it’s about incremental headlines, ​he added.

Oil ⁠near $100 is “still too high”, and for the rupee to see sustained relief, that would need to be corrected, he said.

A pullback in oil prices would offer ⁠much-needed ​relief for oil-importing India and the rupee. ​The run-up over the past two months has prompted economists to lower rupee forecasts, revise inflation ​expectations higher, and downgrade growth outlooks.

The benchmark Nikkei 225 Index rose 4.19% to 62,009.59, breaking through the 62,000 mark for the first time. The broader Topix climbed 2.12% to 3,807.84.

Japanese government ​bonds (JGBs) rose after a three-day trading break that saw the yen appreciate on suspected intervention ​by authorities in Tokyo.

The yen bought 156.33 per dollar, largely steady a ⁠day after a sprint to a 10-week high of 155 fuelled talk of further official support.

Wall ​Street indexes hit record highs overnight as positive results from Advanced Micro Devices propelled euphoria over the red-hot ​artificial intelligence sector. Iran said it is reviewing a U.S. proposal to end the more than two-month war, while President Donald Trump said the U.S. has had very good talks with Tehran.

“Today’s sharp gain of the Nikkei was led by the ​strong performance of chip shares, driven by Advanced Micro Devices’s strong forecast,“ said Takamasa Ikeda, a senior ​portfolio manager at GCI Asset Management. “The contents of the U.S.-Iran peace proposals are thin, but there is an expectation ‌in ⁠the market that further military action will not take place.”

There were 144 advancers on the Nikkei index against 78 decliners. The largest percentage gainers in the index were tech sector suppliers, led by Ibiden, up 15.9%, followed by Mitsui Kinzoku Ltd , gaining 15.3%, and Renesas Electronics, 12.8% higher.

Mining and exporter shares ​were broadly lower, however, ​marking a reversal from ⁠gains during the Iran conflict as energy prices surged and the yen weakened. Inpex, Japan’s top oil and gas explorer, sank 5.9%, while Honda Motor lost 0.7%.

“The automakers remain weak as the environment has become severe with ​intensifying global competition,“ ⁠said Hiroyuki Ueno, chief strategist at Sumitomo Mitsui Trust Asset Management. “Besides that, they may not enjoy benefits of the weak yen in the current fiscal year.”

Minutes released on Thursday of the Bank of Japan’s March ⁠showed ​many board members saw the need to raise interest rates if ​the Iran war-driven energy shock is prolonged.

The benchmark 10-year JGB yield fell 1.5 basis points (bps) to 2.485%. Yields move inversely to ​bond prices. The five-year yield fell 0.5 bps to 1.870%.

Brent crude futures fell $2.50, or 2.5%, to $98.77 a barrel by 1107 GMT. U.S. West Texas Intermediate dropped $2.47, or 2.6%, to $92.61.

Thursday’s session was volatile, with Brent trading in a range of up 1% to down 3.8% from the previous close.

Both benchmarks slumped more than 7% on Wednesday, hitting two-week lows on optimism over a possible end to the Middle East conflict.

Price drops continued into Thursday as investors reacted to fresh headlines of progress towards potential peace talks.

Analysts flagged a report from Saudi Arabia’s Al Arabiya news channel that said understandings have been reached to ease the U.S. blockade in exchange for a gradual reopening of the Strait of Hormuz, and another by Israel’s Channel 12 that said Iran had agreed to transfer its stockpile of 60% enriched uranium to a third country. Reuters could not immediately verify the contents of either report.

Trump says Iran deal ‘very possible’

“From a broader perspective, oil markets have remained stuck between diplomacy and disruption for more than two months, with investors’ emotions being manipulated by headlines almost daily,” said Priyanka Sachdeva, senior market analyst at Phillip Nova.

“If a formal deal eventually materialises, oil prices could witness a free fall as geopolitical premiums rapidly evaporate from the market. However, any fresh signs of attacks on oil infrastructure or escalation in the Middle East could easily trigger another parabolic spike in crude prices.”

Iran had said on Wednesday that it was reviewing a U.S. peace proposal that sources said would formally end the war while leaving unresolved the key U.S. demands that Iran suspend its nuclear programme and reopen the Strait of Hormuz.

Earlier in the week, U.S. Treasury Secretary Scott Bessent urged China to intensify its diplomatic efforts to persuade Iran to open the Strait of Hormuz to international shipping, adding that President Donald Trump and Chinese counterpart Xi Jinping will discuss the subject when they meet next week.

Bessent urges China to step up diplomacy on Iran ahead of Trump-Xi summit

“While peace negotiations are likely to continue at least until next week’s U.S.-China summit, the outlook beyond that remains uncertain,” said Hiroyuki Kikukawa, chief strategist of Nissan Securities Investment.