Asian Markets Quiet as Lunar New Year Holidays Continue
Asian markets traded calmly on Thursday, with several countries still closed for the Lunar New Year holiday. Despite the subdued activity, investors remained cautious as geopolitical tensions between the United States and Iran continued to dominate headlines.
The two nations have long been at odds over Iran’s nuclear program. Washington has accused Tehran of pursuing military ambitions, while Iranian officials maintain that their nuclear objectives are strictly peaceful. Although talks held in Geneva this week showed some progress, the White House confirmed that significant differences remain unresolved.
A senior U.S. official told Reuters that Iran is expected to present a formal proposal aimed at narrowing those differences.
Oil Prices Rise on Middle East Tensions
Markets have grown increasingly sensitive to reports of heightened U.S. military activity in the oil-producing region. According to Rabobank Senior Global Strategist Michael Every, the risk balance currently leans toward a potential U.S. strike after Friday’s market close. He noted that any military action could extend for weeks rather than being resolved quickly.
As a result, oil prices extended gains from the previous session amid fears of supply disruptions. Brent crude futures climbed 0.36% to $70.60 per barrel, while U.S. West Texas Intermediate crude rose 0.43% to $65.47.
AI Optimism Supports Global Stocks
In global equities, renewed enthusiasm around artificial intelligence provided support to stock markets. Nvidia announced a multi-year agreement to supply Meta Platforms with millions of current and next-generation AI chips.
Analysts said the deal offered a welcome boost to technology stocks, which had recently declined amid concerns about elevated valuations and uncertainty over when AI investments would translate into stronger revenue growth.
U.S. Dollar Firm After Fed Minutes
In currency markets, the U.S. dollar strengthened following the release of the Federal Reserve’s latest meeting minutes. The report suggested policymakers are in no hurry to cut interest rates. Several members indicated they would even consider rate hikes if inflation remains persistent.
The minutes also revealed internal debate over the economic impact of artificial intelligence. Some officials expect AI-driven productivity gains to help reduce inflation, while others warned that rapid investment in AI could create financial stability risks.
Key Events to Watch
Investors are now focused on several major developments that could move markets later in the day:
- Walmart earnings results
- U.S. weekly jobless claims data
- Speeches from Federal Reserve officials Raphael Bostic, Michelle Bowman, Neel Kashkari, and Austan Goolsbee
With geopolitical risks, oil prices, AI momentum, and Fed policy all in focus, global markets remain alert to shifting economic and political signals.
