Stocks Extend Rally After Stabilizing the U.S.-Iran Conflict

Asian stock market extended a rally after the low plunge caused by the conflict between the U.S. and Iran. Yesterday, after Trump’s speech it became clear, that the situation was stabilizing, and tensions were easing. This caused stocks to soar once again. The growth process started in the U.S. and then continued in the Asian market.

Equities in South Korea and Hong Kong rose significantly, as well as Japan’s shares. The S&P 500 Index grew, but traders remained worried about happenings after the rocket attack in Baghdad took the edge off a positive Wall Street session later on Wednesday.

It appears that the U.S. and Iran decided to halt hostilities, and investors are hoping that a deeper military conflict can be avoided. We can assess the U.S. economy on Friday with the non-farm jobs report. Meanwhile, the data showed that China’s consumer inflation steadied in December.

Watch out for some impending events during the week, such as the U.S. monthly non-farm employment report, which is due to Friday. Moreover, Federal Reserve officials James Bullard, John Williams, and Charles Evans plan to speak on Thursday.

Here are the updates in major markets:

Stocks

• Japan’s Topix index climbed 1.6% at 3 pm. close to Tokyo.
• Hong Kong’s Hang Seng Index advanced 1.3%.
• South Korea’s Kospi index climbed 1.2%.
• Australia’s S&P/ASX 200 Index added 0.8%.
• The Shanghai Composite Index rose 0.7%.
• Euro Stoxx 50 contracts grew 0.6%.
• Futures on the S&P 500 Index rose higher. The underlying gauge also advanced 0.5% on Wednesday.

Currencies

• The euro bought $1.1113, increasing 0.1%.
• The yen was at 109.3 per dollar, declining 0.1%.
• The offshore yuan was at 6.926 per dollar, advancing 0.2%.
• The Bloomberg Dollar Spot Index was flat.

Bonds

• The yield on 10-year Treasuries decreased about one basis point to 1.86%.
• Australia’s 10-year yield advanced more than four basis points to 1.23%.

Commodities

• West Texas Intermediate crude rose 0.7% to $60 a barrel after a 4.9% decline on Wednesday.
• Gold changed a little at $1,556.2 an ounce.