Asia stocks rally on easing US-Iran tensions

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SYDNEY (BLOOMBERG) - Stocks in Asia rallied, tracking moves higher in US markets, after the United States and Iran appeared to be stepping back from a deeper military conflict. Havens from the yen to Treasuries held losses and oil steadied after its slide.. Read more at straitstimes.com.

SYDNEY - Stocks in Asia rallied, tracking moves higher in US markets, after the United States and Iran appeared to be stepping back from a deeper military conflict. Havens from the yen to Treasuries held losses and oil steadied after its slide.

Japan's Topix index rose 1.2 per cent as of 9:03am in Tokyo. South Korea's Kospi added 1.4 per cent while Australia's S&P/ASX 200 Index climbed 1 per cent. The S&P 500 Index in the US rose 0.5 per cent overnight with Treasury yields as US President Donald Trump's measured remarks on Iran suggested tensions were easing. Traders remained wary though of developments after reports of a rocket attack in Baghdad took the edge off a positive Wall Street session late on Wednesday.

"This is not really increasing hostility per se," Mona Mahajan, an investment strategist at Allianz Global Investors, told Bloomberg TV."More broadly the backdrop remains benign for equities - low rates, low inflation and low growth - a mild Goldilocks in many ways." With geopolitical risks looming over markets, investors are betting a conflict can be contained. Stocks tumbled early on Wednesday in Asia after Iran launched a retaliatory attack on US military bases in Iraq but then sharp reversals followed as the two countries appeared to suggest a halt in hostilities.

 

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