Asia-Pacific indices rose Monday even as the U.S. and Iran continued tit-for-tat strikes in the Middle East. South Korea's Kospi led gains with a jump of more than 3%, while Japan's Nikkei 225 added nearly 2%. European stocks, meanwhile, pointed to a weaker open.
Asia-Pacific markets rose Monday as investors looked past renewed Middle East hostilities between the U.S. and Iran.
Kospi leads regional gains
South Korea's Kospi advanced 3.65%, with the small-cap Kosdaq gaining 1.08%. Japan's Nikkei 225 added nearly 2%, while the Topix rose 0.33%.
Australia's benchmark S&P/ASX 200 was flat. Hong Kong's Hang Seng index, however, moved the other way, down nearly 1%, while mainland China's CSI 300 inched 0.19% higher.
Middle East strikes drive the backdrop
The gains came after the U.S. struck three Iranian oil tankers following claims that warships had been targeted with ballistic missiles. U.S. Energy Secretary Chris Wright said a nuclear deal with Iran may not happen soon.
According to CNBC: "There may not be a nuclear agreement." Wright added that the campaign could instead focus on destroying Iran's capabilities. President Donald Trump has repeatedly cited preventing Iran from acquiring a nuclear weapon as a key U.S. objective, even as he keeps pursuing a diplomatic agreement during the conflict. U.S. stock markets stayed closed Monday for a holiday.
European stocks head for weaker open
European markets were set for a weaker open, with the U.K., France, Germany and Italy all pointed toward slight losses. The regional Stoxx 600 index fell 0.81% last week to start September trading.
Investors are also weighing Thursday's European Central Bank meeting, where a quarter-percentage-point interest rate hike is seen as a near certainty. Separately, German exit polls showed the far-right AfD in first place in Saxony-Anhalt's state elections, though it remains unclear whether the party will secure an absolute majority.
Source: CNBC
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