Asian equities declined as escalating US-Iran tensions impacted market sentiment, while oil prices surged to their highest point since August. Markets reopened lower in Japan and Australia, with caution resurfacing due to fresh geopolitical risks. Stocks have not yet fully priced in these tensions, with expectations leaning towards a diplomatic resolution.
Some top money managers are disagreeing with market expectations for Federal Reserve interest rate cuts. They believe the US economy is strong and inflation may remain high. This view leads them to bet against US government bonds. They anticipate fewer rate reductions than the market is pricing in for later this year and into next year.
Indian stock markets experienced a sharp decline on Thursday. This downturn was driven by escalating tensions between the US and Iran, which pushed Brent crude oil prices above $71 a barrel. The Indian economy's reliance on oil imports makes it vulnerable to such price hikes. The Indian Rupee also weakened against the US Dollar.
MAS Financial Services (MFSL) has seen a 9% stock gain, outperforming its sector index, driven by double-digit disbursement growth and improving margins. The company aims for 1,00,000 crore AUM by 2036, with analysts maintaining a 'buy' rating and raising targets due to attractive valuations and strong growth prospects.
Geopolitical tensions between the US and Iran, including joint naval drills and temporary Strait of Hormuz closures, have fueled concerns of oil supply disruptions. This led to a surge in crude prices, boosting shares of oil exploration companies like Oil India and ONGC, while impacting oil marketing firms.
Europe's wealthiest investors are increasing their allocation to liquid alternative UCITS funds, seeking higher yields as interest rates fall. These retail-friendly products, mimicking hedge fund strategies, saw a 22% asset rise in 2025, reversing a previous decline. This trend highlights a shift away from fixed income towards strategies offering attractive returns and greater liquidity.
Foreign investors poured significant funds into capital goods, financials, and oil & gas sectors in early February. This marked their highest fortnightly purchases since April 2025. Conversely, IT stocks saw substantial selling pressure. This shift reflects a move from services to real economy sectors. The IT sector has experienced a notable decline this year.
