Three Major US Stock Index Futures Rise Over 1% in Asia Trading as Easing Geopolitical Expectations Fuel V-Shaped Reversal

TradingKey - Driven by a rapid reversal in geopolitical expectations, global market sentiment has significantly recovered. The three major U.S. index futures collectively strengthened during Asian trading hours, with gains expanding to over 1%, as risk assets staged a periodic rebound.

On the news front, Donald Trump's latest remarks have become a turning point for the market.

According to media reports, Trump told aides he is willing to push for an end to military action against Iran even if the Strait of Hormuz has not resumed navigation. This statement was interpreted by the market as a potential de-escalation of the conflict, significantly easing previous tensions.

Previously, affected by the Iranian attack on a Kuwaiti tanker, market risk aversion surged sharply. Oil prices once spiked, with WTI crude breaking the $106 mark, weighing on global risk assets across the board.

As expectations reversed, commodities and safe-haven assets moved in tandem. Both WTI and Brent crude oil turned lower, while gold and silver prices edged higher.

Asia-Pacific stock markets also exhibited a "V-shaped reversal." The Nikkei 225 and South Korea's KOSPI plummeted early in the session before losses narrowed rapidly, with the Nikkei turning positive, reflecting the market's sensitive reaction to easing geopolitical risks.

Furthermore, Fed Chair Jerome Powell's previous downplaying of short-term inflationary pressures from rising energy prices also stabilized interest rate expectations to some extent, providing support for risk assets.