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| HSI1 | 25,893.54 | +141.14 | 246.32B |
| HSCEI1 | 8,655.04 | +43.21 | 75.28B |
| Back Zoom + Zoom - Block Traded | |
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2026-04-08 16:22:57 Following the US-Iran agreement to a two-week ceasefire, with Iran consenting to reopen the Strait of Hormuz, US President Donald Trump also secured an “off-ramp”, CLSA said in a report, deciding to add back risk. The broker noted that the 14-day ceasefire between the US and Iran may be insufficient to give Gulf exporting countries the confidence to restore production to pre-war levels, but it should at least allow the release of cargo stranded behind the strait, providing much-needed relief. Both sides have adequate motivation to continue negotiations after the two weeks, though the broker expected each to test the other’s bottom line. Nevertheless, the broker decided to withdraw its defensive stance adopted after the outbreak of war and return to benchmark allocations: China market at benchmark, Taiwan region at 10% underweight, South Korea at 15% overweight," Australia at "20% underweight," India reduced to "10% overweight, Singapore at benchmark, Malaysia at 30% underweight, in line with other ASEAN markets (Thailand, Indonesia and the Philippines). Hong Kong was set at 20% overweight. The two-week ceasefire mediated by Pakistan has taken immediate effect. However, Iran’s desired endgame extends beyond avoiding further attacks and includes some form of compensation, such as sanctions relief and UN resolutions, certain reparations, and the imposition of transit fees in the strait to raise funds. Iran clearly sensed Trump’s eagerness to disengage, but on certain red lines’ including nuclear enrichment and the presence of US regional bases, Trump (and/or Benjamin Netanyahu) may stand firm. Iran suffered tangible damage, while Trump faces political fallout, giving both sides incentives to seek a resolution. If negotiations fail, the US could take actions perceived as violating international law, or even pursue an invasion. With the ceasefire in place, CLSA added cyclicality back into its allocation, as waiting until a final peace agreement is reached would be too late. However, Thailand, the Philippines and Vietnam remain the most exposed markets in its scorecard. ~ AASTOCKS Financial News Website: www.aastocks.com | |