BANGKOK (AP) — World shares were mixed on Thursday, with benchmarks in Japan and South Korea setting fresh records after the U.S. and Iran signed their initial agreement ending the war. This was reported by Qazaqyia.kz citing Associated Press.
The rally in Asia followed a retreat Wednesday on Wall Street driven by speculation the Federal Reserve may raise interest rates this year to curb inflation.
U.S. futures were higher early Thursday, while oil prices fell.
Leaders from the U.S. and Iran signed the agreement to end the war. Specific terms of the deal have not yet been disclosed, but markets welcomed the news.
Japan's Nikkei 225 rose 0.5% to 38,500. South Korea's KOSPI gained 0.8% to above 2,800. China's Shanghai Composite fell 0.2%, while Hong Kong's Hang Seng added 0.3%.
On Wall Street Wednesday, the S&P 500 fell 0.6%, the Dow Jones lost 0.4%, and the Nasdaq dropped 0.8%. The decline followed the release of Fed minutes showing some officials favored a rate hike due to inflation risks.
Oil prices fell: Brent crude dropped to $82.50 per barrel, and WTI to $78.20, on hopes that the US-Iran deal would reduce Middle East tensions.
In currency markets, the dollar weakened against the yen to 149.50 yen. The euro traded at $1.0850.
Analysts said the US-Iran deal could boost the global economy by reducing geopolitical risks, but markets remain focused on the Federal Reserve's next moves.