📈 Asian Markets Rally as Oil Prices Eases Amid Middle East Tensions

Global markets showed resilience on Wednesday as oil prices retreated slightly, providing a temporary breather for Asian equities despite ongoing geopolitical volatility. • Market Performance: MSCI Asia-Pacific index rose 1.2%, while Japan's Nikkei rallied 2%. Chinese blue-chips inched up 0.1% and Hong Kong's Hang Seng gained 0.3%. • Energy Sector: Brent crude dropped 1% to US$ 102.28 per barrel, and WTI fell 1.6%. Despite the dip, the Strait of Hormuz remains largely shut, keeping supply risks high. Analysts warn prices may reprice higher if the blockade persists. • Global Policy Focus: All eyes are on the U.S. Federal Reserve meeting today. Markets are weighing whether the oil shock will lead to stickier inflation, potentially shifting the "dot plot" to project zero rate cuts for 2026. • Currency & Yields: The U.S. Dollar weakened slightly, with the Euro at $1.1539. The Japanese Yen steadied at 159 per dollar, avoiding the critical 160 intervention level. 10-year Treasury yields remained flat at 4.20%.