Asian markets climbed to record highs on Friday, while oil futures headed for their steepest weekly decline in almost two months, as investors awaited details of a possible agreement to reopen the Strait of Hormuz and extend the US-Iran ceasefire.
Sources told Reuters that the United States and Iran had reached an agreement to extend the truce and lift restrictions on shipping through the Strait. However, US President Donald Trump has not yet approved the deal, while Iranian state media reported that it had not been finalised.
Brent crude futures fell below $93 a barrel and were on course for a weekly drop of more than 10%.
During morning trading in Asia, Brent crude was down 0.9% at around $93 a barrel, while US West Texas Intermediate fell 1.1%, slipping just below $88 a barrel.
Major stock indexes in Tokyo, Seoul and Taipei rose by more than 2%, while Australia’s market gained 1%.
“The market has already taken the view that a deal will be reached and the Strait will be open,” said Jason Wong, senior market strategist at BNZ in Wellington.
“The main point is that it removes the risk of a really, really bad outcome. I don’t think it is a green light for oil to fall by $20 or US Treasuries to fall by 20 basis points,” he said.
The MSCI global equities index rose to an all-time high, as enthusiasm over artificial intelligence lifted chipmaker shares worldwide and pushed benchmark indexes in Tokyo and Seoul up by about 2% on Friday, putting them on course for weekly gains.
Dell’s upgraded revenue outlook sent its shares 39% higher in trading and also boosted rival Lenovo in Hong Kong. Lenovo shares have risen nearly 60% this week, helped by strong full-year results.
“The question now is whether this can continue. We believe we are still in the middle of a larger AI-driven investment cycle,” said Damian McIntyre, head of multi-asset solutions at asset manager Federated Hermes.
Source: CNA.
