BENGALURU: Asian equities rose on Wednesday while regional currencies steadied as oil prices tumbled on reports Washington is seeking a month-long ceasefire with Iran, soothing worries about prolonged supply disruptions and bringing some relief to Asia’s oil-importing economies.
The MSCI gauge of emerging market equities rose 1.6 percent, advancing for a second straight session, while MSCI’s emerging market currency index was little changed.
Investors took comfort from reports that Washington had sent Tehran a 15-point proposal and was pressing to ease tensions around the Strait of Hormuz, the conduit for about a fifth of global oil shipments.
The fallout from the war has disrupted flights through Middle Eastern Gulf hubs and sent governments across Asia scrambling to secure fuel, conserve energy and shield households from a price shock.
Although oil fell more than 5 percent, pushing Brent back below USD100 a barrel, prices remain elevated after climbing above USD110 earlier this week, exacerbating pressure on Asia’s net oil importers.
Taiwanese shares rose 2.5 percent, off earlier highs, while South Korean stocks gained 1.6 percent, also paring a sharper early rally, as battered tech-heavy markets recovered. Thai shares advanced 2.3 percent, while equities in Kuala Lumpur, Singapore, India and Manila gained between 0.4 percent and 2.2 percent.
Foreign investors have yanked billions from tech-heavy Taiwan and South Korea since the war began, battering the won and Taiwan dollar, which are down about 4 percent and 2.3 percent this month, respectively.
Comments
Comments are closed for this article.