Markets in Asia surged Monday on relief from escalating U.S.-Iran tensions, with oil prices falling over 4% as ceasefire talks resurface. U.S. futures jumped, and major indices like Japan’s Nikkei, South Korea’s Kospi, and Australia’s S&P/ASX 200 rallied, while Taiwan dipped slightly. This rebound follows a shaky U.S. week, where the S&P 500 barely moved and the Nasdaq tumbled due to tech heavyweights like Micron and Broadcom. Inflation fears persist as energy costs climb and new tariffs loom, with gas hitting over $4 a gallon — pressuring consumers and dimming hopes for Fed rate cuts. Meanwhile, investors question whether AI-driven stock valuations can sustain long-term profits as the year draws to a close.
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