Jumpei Tanaka, head of investment strategy at Pictet Asset Management Japan Ltd, said, “Trump’s speech was not what the market had hoped for — namely, signals pointing toward an end to the conflict. Instead, he suggested a potential escalation, stating that the U.S. could deliver extremely severe strikes against Iran within the next two to three weeks and warning that Iranian power plants would be targeted if no agreement is reached. As a result, the remarks are being interpreted as a negative factor for the equity market.”
Ken Wong, Asian equity portfolio specialist at Eastspring Investments Hong Kong Ltd, said, “While everyone wants to move on from this, there is still much to unpack from the past month’s events in the Middle East. The question now is how much these developments will ripple through the global economy over the coming quarters. With oil shocks in play, the likelihood of the Federal Reserve lowering interest rates has diminished further.” (Bloomberg)