Peace Deal Cools Geopolitical Risks; Global Markets React Differently

• Overall Global Market Movement: Asian equities remained steady while global oil prices dipped following the signing of an interim peace deal between the U.S. and Iran. The agreement extends an existing ceasefire by 60 days to negotiate a final truce, reducing near-term geopolitical friction. • Oil & Commodity Impacts: Oil markets moved lower as supply anxieties eased. U.S. crude fell 1.25% to US$ 75.83 a barrel, and Brent crude dropped 1.4% to US$ 78.41 per barrel. Spot gold traded at US$ 4,309.75 per ounce. Lower global energy pricing typically helps buffer importing economies by curbing imported inflation. • Regional Equity & FX Trends: - Japan's Nikkei index surged past the 71,000 mark for the first time, driven by AI-related and semiconductor shares. - South Korean shares gained 0.9%, while MSCI’s broad Asia-Pacific index remained flat. - The U.S. dollar hit its highest level against the Japanese Yen since July 2024, trading at 160.65. • U.S. Market Retraction & Interest Rates: Despite positive geopolitical developments, major Wall Street indexes dropped over 1% overnight. Investors pivoted toward expectations of tighter monetary policy after Federal Reserve Chair Kevin Warsh signaled potential rate hikes to curb inflation, pushing the 10-year Treasury yield up to 4.471%.