Asian Shares and Bonds Rise as Oil Prices Drop Amid Gulf Tensions Easing
Share markets in Asia rose on Monday, supported by a decline in oil prices following a temporary pause in fighting between Iran and the United States. The drop in Brent crude to $92.27 per barrel eased inflation concerns and boosted bond markets ahead of key central bank meetings this week. Analysts noted that higher oil prices had previously encouraged de-escalation, but recent attacks on Saudi installations by Yemen's Houthi rebels still posed risks. The U.S. Federal Reserve is set to meet later in the week with a roughly one-in-three chance of a rate hike according to market expectations, though most analysts expect no move due to mixed signals and internal divisions within the Fed. The Bank of England and Japan are also scheduled for meetings but expected to remain cautious on inflation. Equity futures across major markets rose as investors looked ahead to earnings reports from key tech firms including Microsoft, Meta Platforms, Amazon, Apple, and Qualcomm.
Topics: central_bank_meetings geopolitics inflation_risks oil_prices