Asia-Pacific markets started Monday higher, following the drop in oil prices after signs of reduced hostilities in the Middle East. The move brought relief to investors and helped support the region’s main stock markets.
In Japan, the Nikkei 225 rose 0,24%, while the Topix posted a gain of 0,60%. In South Korea, the Kospi advanced 0,44%, and the Kosdaq index, which includes smaller-cap companies, gained 1,49%.
In Australia, the S&P/ASX 200 also posted positive performance, with a gain of 0,97%. The behavior of the indexes indicated a favorable start to the week for Asian markets, amid lower pressure caused by oil.
Futures contracts also pointed to a positive session. Chicago futures linked to the Nikkei 225 stood at 65.590 points, above the previous close of 64.611,15 points, signaling a significantly higher opening.
In Hong Kong, Hang Seng futures were traded at 25.020 points. The level was above Friday’s close, when the index ended the session at 24.963,23 points.
In Australia, futures contracts stood at 8.766 points, while the S&P/ASX 200 had ended the previous session at 8.772,30 points.
The drop in oil was one of the main factors behind the positive movement. Commodity prices fell almost 5% after Iran said it will cease the attacks if the United States also halts its actions.
The statement signaled a possible easing of tensions after nearly two weeks of growing hostilities. For the markets, lower pressure on oil could reduce concerns related to energy costs and inflation, while investors monitor the next moves of global stock markets and their possible impacts on risk assets, including cryptocurrencies.