Asian stocks rise, Brent drops 7.4% as US-Iran strikes pause
Why it matters: Easing fears around the Strait of Hormuz lifted risk assets and shifted focus back to this week's Fed decision.
Asian stocks climbed and oil prices fell Monday after the United States and Iran paused retaliatory attacks, easing concerns about energy supplies from the Middle East. Brent crude dropped as much as 7.4% to below $90 a barrel before trimming losses, while MSCI's Asia-Pacific equity gauge rose 0.4% and Nasdaq 100 futures added 1.2%. Japan's Topix gained 0.6% and Australia's S&P/ASX 200 rose 0.9%. The dollar weakened against most major peers, while Treasuries and other government bonds advanced as inflation worries eased. The pause followed 13 days of US strikes on Iran and talks between Iranian and Omani officials over shipping through the Strait of Hormuz, a critical oil transit route.