MSCI’s Asia Pacific Index rose 0.4% with South Korea — a poster child for artificial intelligence — jumping 2.4%. US equity-index futures fluctuated after both the S&P 500 and the Nasdaq 100 indexes closed at a record high on Friday, helped by strong earnings from megacap technology companies.
Markets opened trading Monday on an optimistic note after President Donald Trump said the US will begin guiding ships not involved in the Iran conflict through the Strait of Hormuz from Monday. However, a senior Iranian official warned that Tehran would consider any US interference in the Strait of Hormuz a ceasefire breach.
Brent crude, which fell as much as 2.4% to $105.55 a barrel, erased those losses to climb back over $108. The dollar edged lower against most of its major peers. The yen was a touch stronger at 156.94 per dollar after Japan reportedly intervened in the market on Thursday to support the currency.
Treasury futures rose. There will be no cash trading in Treasuries until New York due to holidays in Tokyo and London.
Trump described discussions with Tehran as “very positive” after it received Washington’s response to its latest proposal to end the war. The steps may pave the way for smoother energy flows and a potential deal, even as uncertainty over the conflict persists.
“The devil is always in the detail, but is a positive signal as it shows both parties are willing to find common ground,” said Rodrigo Catril, a strategist at National Australia Bank in Sydney. Whether the positive sentiment lasts “is hard to tell. We have been here before,” he said. Iran’s proposal called for a complete end to the conflict within 30 days along with guarantees against renewed strikes, the semi-official Tasnim News Agency reported. The plan reiterated Tehran’s earlier demands, including that US forces withdraw from near Iran, a maritime blockade be lifted, sanctions removed and reparations paid, it said.
On Sunday, Iran said it received the US response to its plan via Pakistan, and is reviewing it.
