Asian Stocks Rebound Cautiously as Israel-Iran Tensions Linger; Oil Prices Surge, Gold Retreats
As geopolitical tensions between Israel and Iran persist, Asian markets show cautious recovery. Oil prices climb, while gold retreats and the yen weakens amid diverging safe-haven moves
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Asian Markets Recover Cautiously Amid Ongoing Israel-Iran Tensions; Oil Surges While Gold, Yen Dip
Asian stock markets showed signs of cautious recovery on Monday despite lingering geopolitical tensions between Israel and Iran. Investors appeared jittery, navigating a landscape of rising oil prices and diverging movements in traditional safe-haven assets.
After a sharp dip last week triggered by concerns of a broader Middle East conflict, equities across Asia edged higher, supported by a slight improvement in investor sentiment. However, market participants remained wary, closely monitoring any further escalation in the conflict.
Brent crude futures jumped over 1%, trading above $91 per barrel, reflecting heightened fears of potential disruptions in global oil supply if tensions worsen. Meanwhile, U.S. West Texas Intermediate (WTI) crude saw similar gains, marking a strong start to the week for energy markets.
Surprisingly, traditional safe-haven bets showed mixed signals. Gold prices, which usually rise in times of geopolitical uncertainty, edged lower after a recent rally, while the Japanese yen weakened against the dollar. Analysts suggest the divergence could be attributed to profit booking in gold and speculative flows favoring the greenback over the yen.
The broader investor strategy appears to be one of cautious optimism, with a shift towards selective buying in stocks and commodities. Market analysts warn that volatility could persist unless diplomatic channels ease the standoff between Israel and Iran.
