Asian markets today: Asian markets opened on a strong note on Monday, 15 June, with South Korea’s Kospi emerging as the top performer, surging more than 5.54% in early trade, while the small-cap Kosdaq gained 2.34%.
Japan’s Nikkei 225 advanced 5%, and the broader Topix climbed 2.43%. Australia’s benchmark S&P/ASX 200 also traded higher, rising 1.49%.
Meanwhile, Hong Kong’s Hang Seng index futures were trading at 24,706, slightly below the benchmark index’s previous closing level of 24,718.10.
What’s driving Asian markets today?
US President Donald Trump announced that a deal had been finalized to bring an end to the conflict between the United States and Iran.
In a social media post late Sunday, Trump stated that the agreement with Iran was “now complete.” Meanwhile, Shehbaz Sharif said that an official signing ceremony is scheduled to take place in Switzerland on Friday.
Trump also revealed that he had authorized the reopening of the strategically important Strait of Hormuz, a move that triggered a sharp decline in oil prices.
In a subsequent post, Trump stated that the strait would reopen on Friday, coinciding with the official peace agreement signing ceremony scheduled to take place in Switzerland.
“With the opening of the Strait upon the signing of the Deal on Friday, for purposes of mine removal, oil will flow on both ends again for the Region, and the World!” he said.
However, the announcement followed an exchange of fire between Israel and the Iran-backed Hezbollah in Lebanon, which had raised doubts over whether the agreement would be successfully concluded on Sunday.
Oil prices fell sharply following the announcement. US West Texas Intermediate (WTI) crude futures for July delivery dropped 4.77% to $80.83 per barrel, while Brent crude futures for August delivery, the global benchmark, declined about 4% to $83.77 per barrel.
“Overall, sentiment has turned decisively positive following the reported US–Iran agreement and the sharp decline in crude oil prices. The development represents a major positive catalyst for both global and domestic markets and has the potential to trigger a broad-based relief rally across sectors. However, investors will continue to monitor the formal signing of the agreement and the reopening of the Strait of Hormuz for confirmation that the de-escalation process remains on track,” said Ponmudi R, CEO of Enrich Money.
US stock market today
moved higher, with Dow Jones Industrial Average futures gaining 342 points, or 0.7%. S&P 500 futures advanced 0.9%, and Nasdaq 100 futures surged 1.4%.
Meanwhile, US dollar dropped to its lowest level in 10 days against its major counterparts on Monday, as the announcement of a US-Iran peace agreement dampened demand for the safe-haven currency.
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.