Asian Markets Advance on AI Wave, Wall Street Hits Highs; Indian Shares Seen Opening Higher

Mumbai, May 29:Indian benchmark indices are likely to open higher on Friday, tracking overnight gains on Wall Street,advances in Asia and reports that the U.S. and Iran had reached a preliminary agreement to extend their ceasefire and ease shipping restrictions through the Strait of Hormuz.

Oil Slips as Ceasefire Hopes Improve Sentiment

Crude oil prices declined after reports said the U.S. and Iran had reached an agreement to extend their ceasefire for another 60 days and lift restrictions on shipping through the Strait of Hormuz. Brent crude slipped about 0.9%, as traders bet the agreement could help stabilise global energy supplies and reduce fears of a prolonged disruption in one of the world’s most critical oil transit routes.

However, caution persisted as US President Donald Trump had yet to formally approve the agreement, while Iranian state media said the deal had not been finalised. Investors therefore remained wary of sudden reversals in geopolitical developments.

Asian Equities Advance

Asian markets rose on Friday as chip makers sent the stocks soaring.

Japan’s Nikkei rose 1.86%, South Korea’s Kospiadvanced 2.23%, while Hong Kong’s Hang Seng edged up 0.22%. MSCI’s index of world stocks edged up to a record high riding the AI wave.

Softer oil prices and record highs on Wall Street supported broader sentiment, though traders continued monitoring headlines from Washington and Tehran for confirmation on the ceasefire extension.

Wall Street Scales Fresh Record Highs

U.S. markets ended higher overnight, with the S&P 500 and Nasdaq touching fresh record highs as easing oil prices and optimism surrounding artificial intelligence-linked stocks boosted sentiment.

Technology shares continued to lead gains, while lower Treasury yields also supported risk-taking across equities. Investors appeared encouraged by signs that tensions in the Middle East may not escalate further immediately, helping markets recover from recent volatility tied to geopolitical risks.

European Markets End Lower

European equities, however, closed lower on Thursday as uncertainty surrounding the U.S.-Iran negotiations kept investors cautious through most of the session.

The pan-European STOXX 600 index declined 0.5%, weighed down by weakness in banking and travel-related stocks. Rising geopolitical tensions and concerns over global growth capped gains, though losses narrowed after reports of progress in ceasefire talks emerged later in the session.

Indian Markets Could See Positive Start

Back home, Indian equities are expected to begin the session on a firm note, aided by softer crude prices, positive global market cues and improving global risk sentiment.

Oil-sensitive sectors such as aviation, paints and oil marketing companies could remain in focus following the decline in crude prices.

However, analysts expect volatility to remain elevated through the day as markets continue reacting to geopolitical developments and movements in global commodity prices.

Source:

• Exchanges