Regional stock markets rebound and oil prices decline as investors await progress in Islamabad negotiations

Glonghui, April 21 | Analysts say that global markets are indeed experiencing roller-coaster-like volatility at the moment, but news that Iran may open peace talks with the United States has boosted sentiment and stabilized regional markets again. South Korea’s KOSPI Index rose nearly 2%, and the Nikkei 225 Index gained more than 1%. However, for investors, the next moves are of utmost importance. Analysts point out that many investors are currently unwilling to exit the market, as equities could surge quickly if an agreement is reached. Therefore, most parties are now taking a wait-and-see approach. The market is still observing whether Islamabad will hold some form of consultation. Investors generally expect the likelihood of reaching a preliminary agreement to be higher than that of reaching a comprehensive deal. At present, the market is mainly reacting to a shift in sentiment “from optimism to concern.” However, it is widely believed that the most severe stage of the crisis and the resulting disruption to energy supplies may already be over.