Donald Trump ’s announcement of a two-week ceasefire between the US and Iran brings welcome relief to Asian markets, according to strategists. Equities should see strong rallies across the region in the near term, they say. However, the lack of clear details on the agreement and lingering concerns over the Strait of Hormuz are cause for caution and volatility will remain high, they warn. Nick Twid...
Donald Trump ’s announcement of a two-week ceasefire between the US and Iran brings welcome relief to Asian markets, according to strategists. Equities should see strong rallies across the region in the near term, they say. However, the lack of clear details on the agreement and lingering concerns over the Strait of Hormuz are cause for caution and volatility will remain high, they warn. Nick Twidale , chief market analyst at AT Global Markets “This ceasefire is huge step in the right direction for risk sentiment ... The fact that the market was prepared for this to go either way today will exacerbate moves as it will come as a double relief rally. I expect to see big percentage gains across the region today, but be aware that we can still see more volatility on any fresh headline. These are big moves in markets which should promote further volatility.” Hiroyuki Ueno , chief strategist at Sumitomo Mitsui Trust Asset Management “This is a relief for markets. For the time being, things have calmed down. Iran has actually come to the table, which is a step forward. There’s now a feeling that high oil prices won’t continue for too much longer.” Stocks that had been “dumped” during the rout over the past month will be repurchased, fueling a “decent” rebound in the short term. In Japan, tech and AI stocks look best positioned for buying. “But things are not guaranteed to go smoothly from here, and investors shouldn’t get ahead of themselves.” Matthew Haupt , a hedge fund manager at Wilson Asset Management Markets will be risk-on “for a bit,” but we “still need to see Strait of Hormuz open ... it will be 2 weeks on edge.” “I was adding last night in anticipation and added a tiny bit this morning. Still feels like there will be a few twists and turns left before we get an outcome.” Expects equities in markets that import most of their energy, including Korea, to rally. Carol Kong , a strategist at Commonwealth Bank of Australia: There have been knee-jerk reactions across FX...