Asian equities advanced Thursday following Wall Street’s record-breaking close, with the S&P 500 and Dow Jones Industrial Average hitting new highs. Investors remain focused on oil market dynamics as ongoing protests in Iran and potential U.S. intervention by President Trump weigh on sentiment.
- S&P 500 closed at 5,468.71, Dow Jones at 41,462.87—both record highs
- WTI crude rose 1.7% to $87.45 per barrel amid Iran unrest
- Nikkei 225 gained 1.2%, Shanghai Composite rose 0.8%
- XAU/USD increased to $2,354.90 on safe-haven demand
- EUR/USD held at 1.0823, indicating stable currency sentiment
- Potential U.S. intervention in Iran adds geopolitical risk to energy markets
Asia-Pacific markets opened higher on Thursday, riding the momentum from Wall Street’s strong finish to the previous week. The S&P 500 closed at 5,468.71, while the Dow Jones Industrial Average reached 41,462.87—both record highs. This global rally was driven by sustained investor confidence in U.S. economic resilience and optimistic earnings outlooks for tech and financial sectors. In Tokyo, the Nikkei 225 rose 1.2%, and the Shanghai Composite gained 0.8% as regional equities reflected broader risk-on sentiment. Commodity markets showed divergent movements. Crude oil prices, tracked via WTI futures, rose 1.7% to $87.45 per barrel amid growing concerns over supply disruptions. The uptick follows escalating unrest in Iran, where nationwide protests have disrupted key oil infrastructure and raised fears of prolonged instability. Gold prices, measured by XAU/USD, edged up 0.4% to $2,354.90, reflecting safe-haven demand amid geopolitical uncertainty. The European exchange rate, EUR/USD, held steady at 1.0823, indicating limited currency volatility despite the risk backdrop. Market participants are closely monitoring U.S. policy signals, particularly with President Trump reportedly evaluating military and diplomatic measures to respond to developments in Iran. This potential escalation could further impact energy markets and global inflation expectations. The rally underscores a shift toward risk-taking in global markets, but the oil price spike and geopolitical tensions could temper gains if tensions escalate. Financial and energy firms, particularly those with exposure to Middle East supply chains, are likely to face heightened volatility in the coming days.