INTERNATIONAL – Most Asian stocks are seeing out the week on a positive note, after the S&P 500 notched up a new record high.
Despite the recent US and Iran airstrikes, risk appetite has been largely restored, with USD/JPY advancing some 1.3 percent so far this week, while Gold has erased all of its gains to trade below the psychological $1 550 level.
Investors have been emboldened by signs that both the US and Iran are backing away from the brink of an all-out conflict.
The flare-up in the Middle East was the latest reminder for investors to remain vigilant over geopolitical risks.
It remains to be seen whether this is merely a lull in what could be a protracted ‘action-reaction’ cycle between the US and Iran; such a scenario may still have to be factored into investors’ respective asset allocation strategies.