Asian stock markets surge following oil price slump after ceasefire agreement

Tokyo (Japan), 8 April (LaPresse/AP) – Asian stock markets have risen sharply following the slump in oil prices, after the announcement of a two-week ceasefire agreement between the United States and Iran, which provides for the reopening of the Strait of Hormuz. This morning, benchmark indices rose in Japan, Australia, South Korea and China. In early trading, Japan’s Nikkei 225 index gained 5.0% to 56,106.18, Australia’s S&P/ASX 200 index jumped 2.6% to 8,952.30, South Korea’s Kospi rose by 5.9% to 5,819.97 and Hong Kong’s Hang Seng rose by 2.6% to 25,767.42, whilst the Shanghai Composite gained 1.7% to 3,957.55. Oil prices plummeted below $100 a barrel following the recent price spike, which had been a direct consequence of the war, having effectively blocked passage through the Strait of Hormuz. The US benchmark crude fell by $16.84 to $96.11 a barrel. Brent, the international benchmark, fell by $14.51 to $94.76 a barrel.