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Asian markets experienced mixed movements as South Korean stocks rebounded sharply after a 12% opening surge, though gains moderated to +8.6% by close. Japanese markets also rose modestly, while oil prices climbed to their highest since the war due to ongoing geopolitical tensions in the Strait of Hormuz. China announced plans for proactive fiscal policy and continued moderately loose monetary policy, but analysts emphasize the need for concrete actions to restore market confidence. Gold and Bitcoin saw gains, though Bitcoin dipped slightly from its previous day's high. The US dollar remained strong, while the Australian dollar lagged. The bounce in Korean equities and oil prices highlights the volatile interplay between geopolitical risks and market sentiment. Investors are closely watching China's policy commitments, particularly its tax reforms and consumption-driven strategies, which could influence global supply chains and commodity demand. The Strait of Hormuz's closure and US-Iran tensions remain critical risks for oil markets, with potential spillovers into energy prices and global economic growth. For traders, the focus will shift to China's implementation of its five-year plan and whether it can deliver tangible economic reforms. Gulf investors should monitor oil price stability and regional trade dynamics, as energy exports remain a cornerstone of the MENA economy. Additionally, the performance of the US dollar against emerging market currencies like the Korean won and Australian dollar will be key indicators of risk appetite in the coming weeks.
