Oil gave up early gains and Asian stocks advanced as investors welcomed signs of progress in diplomatic talks between the US and Iran. A rally in technology shares helped lift the MSCI Asia Pacific Index up 0.6%, while S&P 500 futures pared an early decline to trade 0.5% lower.
Gold prices rebounded and Brent crude slid 1.7% to $79.20 a barrel as the US and Iran agreed to a roadmap toward reaching a final peace deal within 60 days.
Treasuries dropped as cash trading resumed after Friday’s US holiday. “Encouraging progress has been made including the creation of a mechanism for further technical talks,” mediators Qatar and Pakistan said in a joint statement.
The sides also established a communication line to avoid incidents and miscalculation, with the aim of ensuring safe passage for commercial vessels through the Strait of Hormuz.
“Asian markets are moving ahead of the deal, not waiting for the deal,” said Hebe Chen, a senior market analyst at Vantage Global Prime in Sydney.
“The US-Iran roadmap is still only tentative, but investors are treating it as a stepping stone toward lower oil risk, softer inflation pressure, and a cleaner path back into growth and technology shares.”
