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Key Takeaways Renewed US-Iran tensions pushed Brent crude briefly above US$80 , reigniting concerns over global energy supplies. Despite geopolitical uncertainty, Wall Street avoided a sharp sell-off , suggesting investors believe the conflict remains manageable for now. Higher oil prices have revived expectations of a Federal Reserve rate hike , as markets worry about renewed inflation. Technology stocks remained relatively resilient , showing that AI continues to provide underlying support for equities. The next move in oil prices could determine whether market volatility returns. Market Insight When news broke that the  US had launched fresh strikes on Iran , investors immediately rushed into the oil market. Brent crude briefly climbed above US$80 a barrel , as fears grew that escalating tensions could disrupt supplies through the  Strait of Hormuz , one of the world's busiest energy shipping routes. Yet the reaction in equities was far more measured. Although the  S...

Key Takeaways Oil prices surged after fresh US airstrikes on Iran , raising concerns over global energy supplies. Asian stock markets remained relatively resilient , suggesting investors believe the geopolitical disruption is manageable for now. Markets are closely watching the Strait of Hormuz , a critical shipping route for global oil exports. Higher oil prices could reignite inflation concerns , potentially affecting central bank interest rate decisions. The market's calm response may change quickly if the conflict escalates further. Market Insight Fresh  US airstrikes on Iran  sent  Brent crude  up more than  2% , yet the reaction across equity markets was surprisingly muted. Normally, a military escalation in the Middle East would trigger broad selling across global equities. Instead,  Asian stocks were largely unchanged , while  US stock futures even edged slightly higher  after an initial bout of volatility. So why did oil jump while stocks...

Key Takeaways Asian equities extended their rally , putting the region on track for its strongest quarterly performance in 17 years as technology stocks rebounded. The Japanese yen weakened to a 40-year low , raising the possibility of government intervention while continuing to support Japan's exporters. Markets are closely watching US-Iran peace talks and US jobs data , both of which could shape expectations for Federal Reserve policy. Technology remains the market's key leadership sector , with continued strength likely to determine the sustainability of the global equity rally. Market Overview Asian markets advanced on Tuesday, following another strong session on Wall Street as investors returned to  AI-related technology stocks  after last week's sharp pullback. The  MSCI Asia Pacific Index  rose 0.5%, leaving the benchmark on course for its  best quarterly gain in 17 years , while gains in  Japan  and  South Korea  led the regional rall...

Key Takeaways FBM KLCI slipped below its 2026 gains , pressured by renewed geopolitical concerns and regional market weakness. Foreign fund outflows and political uncertainty  continue to cap market sentiment ahead of upcoming state elections. Higher oil prices and elevated US interest rate expectations  could prolong market volatility. Analysts favour domestic, cash-generative companies , viewing market weakness as a selective buying opportunity. Market Overview Malaysian equities started the week on a weaker footing, with the  FBM KLCI  falling as much as  0.8%  to  1,655.28 , wiping out its gains for the year. The decline mirrored losses across major Asian markets as investors shifted their focus back to geopolitical tensions involving  Iran  and the broader Middle East. Financial heavyweights led the pullback, with  Public Bank  declining 1.5%, contributing significantly to the benchmark index's weakest level since December 2025...

The US says the Strait of Hormuz will reopen quickly but global allies are not convinced. That gap in expectations could be a key risk for markets. Key Points US expects Hormuz reopening within days European allies warn it could take  weeks, not days Mine-clearing and security risks remain unresolved Shipping may take  up to 2 weeks to resume meaningfully Full normalisation could take  much longer Disagreements persist on  rules, tolls, and control of the strait Markets may be pricing in a smooth reopening, but reality could be slower and more complex. Why the Delay Matters Reopening Hormuz is not just a political decision, it is an operational challenge: Mines may still be present Ships need  security guarantees Insurance and risk tolerance vary among shippers This means even after a deal is signed,  confidence will take time to return . A Divided Global Response At the G7 level: The US is pushing for a  rapid reopening Europe is demanding  clari...

Asian equities rallied sharply as  optimism over a potential Middle East peace deal  triggered a broad risk-on move, with  falling oil prices easing inflation concerns and supporting equities . Equity Markets Rally on Diplomatic Breakthrough Hopes Regional markets extended gains alongside global equities: Nikkei 225   +4.3% Kospi   +8.3% Australia’s resource-heavy stocks  +1.8% The rally reflects  renewed investor confidence , supported by expectations that a  peace agreement could be reached soon . Oil Prices Drop, Easing Inflation and Policy Risks Energy markets reacted strongly to the improving outlook: Brent crude ~US$89 per barrel West Texas Intermediate crude   ~US$86 per barrel Key driver: Stocks rose because lower oil prices reduce inflation and Federal Reserve tightening risks , improving the outlook for interest rates and valuations. Global Markets Join Risk-On Rally Wall Street posted strong gains overnight: Nasdaq Composite  ...

Fresh US military strikes on Iran have  re-escalated geopolitical tensions , underscoring the fragility of the ceasefire and raising concerns over  global energy supply disruptions , particularly in the critical Strait of Hormuz. US Conducts “Defensive” Strikes Amid Rising Tensions The US military targeted Iranian drone operations, including: Destruction of a drone control station in Bandar Abbas Interception of  four attack drones Officials described the actions as  measured and defensive , aimed at  maintaining the ceasefire , though Iran labelled earlier strikes a violation. Strait of Hormuz Remains a Key Flashpoint The situation around the  Strait of Hormuz  remains highly unstable: Iranian forces reportedly  warned off commercial vessels Traffic through the strait remains  significantly reduced Pre-war flow:  125–140 ships daily , now sharply lower The waterway handles roughly  20% of global oil and LNG flows , making it centra...

China has signaled willingness to  extend its trade truce with the United States , offering markets a degree of stability while setting clear limits on future tariff escalation. Negotiations to Extend Trade Agreement Beijing confirmed that trade teams from China and the US will  negotiate an extension of the one-year agreement reached in late 2025. The deal, initially agreed in Kuala Lumpur and formalised at a summit in Busan, included: Suspension of certain tariffs Easing of  rare earth export restrictions Pause on  investigations into China’s shipbuilding sector The current arrangement is set to run until  November 2026 . China Sets Boundaries on Tariff Levels China indicated it is willing to  tolerate US tariffs , but only within limits: Acceptable tariff level:  ~30% ceiling Current effective rate:  ~21%  (after US court rulings) This stance signals  pragmatism from Beijing , while pushing back against attempts by the US to  rei...

Global markets turned cautious again as escalating tensions in the Middle East  reversed recent risk-on sentiment , pushing  oil prices higher  and dragging US equity futures lower. US Futures Slip as Risk Appetite Fades Contracts on major US indices declined in early trading: S&P 500  futures  -0.2% Nasdaq 100  futures  -0.3% The pullback follows  record highs in US equities earlier this week , highlighting how quickly  geopolitical shocks can shift market direction . Oil Prices Rise on Supply Disruption Fears Crude oil prices moved higher after reports of: Explosions near a key Iranian port Attacks on US naval vessels in the Strait of Hormuz West Texas Intermediate crude  extended gains, reflecting concerns that  energy supply routes could be disrupted . The Strait of Hormuz remains a  critical global oil chokepoint , making it highly sensitive to geopolitical developments. Dollar and Yields Strengthen on Safe-Haven Deman...

Oil prices eased modestly on Tuesday after recent sharp gains, as signs emerged that the US is  loosening Iran’s control over the Strait of Hormuz , offering limited relief to global supply concerns. Oil Prices Slip After Strong Rally Crude benchmarks declined following a surge in the previous session: Brent crude  fell  1.1% to ~US$113/barrel WTI crude  dropped  1.9% to ~US$104/barrel The pullback comes after  multi-day gains driven by supply disruption fears , suggesting short-term  profit-taking  rather than a shift in fundamentals. Limited Progress in Reopening Hormuz The US has begun efforts to restore shipping access: US Navy escorted vessels through the  Strait of Hormuz A Maersk-operated ship successfully exited the Gulf However, analysts stress this remains: A  one-off development , not a full reopening Insufficient to eliminate broader supply risks The Strait typically carries  ~20% of global oil supply , making it a criti...

HSBC Holdings Plc  reported a  first-quarter profit miss , as rising  credit costs and geopolitical risks  offset otherwise stable operating performance. Earnings Impacted by Rising Credit Charges HSBC posted: Pre-tax profit: US$9.4 billion  (vs  US$9.6 billion expected ) Expected credit losses: US$1.3 billion Key drivers of higher provisions included: US$400 million  tied to a  UK fraud-related exposure US$300 million  in additional allowances linked to  deteriorating economic outlook  from Middle East tensions This reflects growing pressure on banks from  credit risk and macro uncertainty . Geopolitical Risks Hit Growth Regions Although HSBC has no direct exposure to Iran, the  spillover effects of the conflict  are impacting: Middle East economies , a key growth region Global trade flows , where HSBC has significant exposure As one of the world’s largest trade-finance banks, HSBC is particularly sensitive to  ...

Global markets edged higher after  Donald Trump  announced an  indefinite extension of the Iran ceasefire , supporting risk sentiment, although  ongoing energy disruptions continue to cap gains . Equity Markets Hold Firm on Reduced War Fears US futures pointed higher in Asian trading: S&P 500  futures  +0.6% Nasdaq Composite  futures  +0.7% However, regional markets were mixed: MSCI Asia-Pacific Index ex-Japan   -0.5% Nikkei 225  surged to a  record high Markets have largely  recovered to pre-war levels , reflecting optimism that peak geopolitical risk may have passed. Ceasefire Extension Offers Support, But Uncertainty Remains The ceasefire extension was  unilateral , with no confirmation from Iran or Israel. Investors remain cautious as: Peace talks have not resumed The  Strait of Hormuz remains closed Geopolitical risks continue to linger As a result, the latest announcement had  limited impact on markets ...

Asian equities advanced on Wednesday as easing geopolitical tensions and falling oil prices boosted  risk appetite , signaling a potential stabilisation in global markets after weeks of volatility.  Regional Stocks Rebound on Improved Sentiment The  MSCI Asia-Pacific Index  rose  1.2% , with broad-based gains across the region. South Korea led the rally, with its benchmark surging  3.1% China’s  CSI 300 Index  recovered losses tied to the Iran conflict Markets in Taiwan and Singapore also  erased earlier declines , reflecting improving investor confidence The rebound suggests  Asian markets are recovering from war-driven selloffs , as investors anticipate de-escalation. Oil Prices Decline, Easing Inflation Concerns Crude oil prices extended losses for a second session: Brent crude fell to around US$94.50 per barrel WTI crude dropped to about US$90.70 per barrel The decline followed comments from  Donald Trump  indicating the co...

US markets are set for a weaker open as  geopolitical tensions escalate sharply , following the US decision to impose a  naval blockade on the Strait of Hormuz , a key global energy artery. Futures Drop as Risk Sentiment Deteriorates US stock futures declined in early trading: Dow Jones Industrial Average  futures  -0.9% S&P 500 Index  futures  -0.9% Invesco QQQ Trust futures  -1.1% The pullback follows a  strong rally last week , as investors now reassess risks tied to the Middle East conflict. Oil Prices Surge on Supply Disruption Fears Energy markets reacted sharply to the blockade announcement: US crude surged ~8% to US$104.40 per barrel Brent crude rose ~7% to US$102.51 The Strait of Hormuz is a  critical chokepoint , handling roughly  20% of global oil flows , making any disruption a major driver of prices. Blockade Escalates Geopolitical Tensions Donald Trump  confirmed that the US Navy will  blockade all vessels ent...