Asian stocks rallied as oil prices eased after US President Donald Trump suggested the latest strikes on Iran could be short-lived, easing fears of a prolonged energy and inflation shock.
Most Asian stocks enjoyed a healthy recovery Thursday following a drab start to the week as bond yields and oil prices dropped after Donald Trump suggested the latest US attacks against Iran would likely be short-lived.
Trading floors have been jolted since US strikes on Islamic Republic targets in the Strait of Hormuz sparked tit-for-tat exchanges between the two and sent crude rallying as much as 10 percent.
The flare-up, which broke weeks of relative calm around the waterway – a crucial transit for a fifth of global oil and gas – fanned fears of another step up in already-elevated inflation and put pressure on central banks to hike interest rates.
It also came just days after a hawkish speech by Federal Reserve boss Kevin Warsh that was seen by investors as a pivot towards a possible tightening of monetary policy.
