FX.co ★ Asian Shares Rebound On Tempered Middle East Fears

On Monday, Asian shares recovered, and the US dollar as well as oil and gold pulled back from their recent peaks, thanks to eased Middle East conflict apprehensions. Investors are showing a renewed interest in higher risk assets after Iran downplayed reported counterattacks by Israel on its territory.

In addition, the ongoing decrease in oil prices, driven by fears of economic slowdown and indications of increased stockpiles in the US, managed to alleviate investor concerns about inflation and interest rates.

Conversely, China's Shanghai Composite index, relinquished its initial gains, closing 0.67 percent lower at 3,044.60. The People's Bank of China chose to maintain its 1-year and 5-year loan prime rates, leading to the decline of electric vehicle stocks due to growing worries about profit margins amid escalating price wars.

Hong Kong's Hang Seng, on the other hand, managed to surge by 1.77 percent to 16,511.69, buoyed by the announcement by China's market regulator about facilitating Hong Kong listings by top Chinese companies and expanding the Stock Connect cross-border investment scheme.

According to the China Securities Regulatory Commission, the move aimed to strengthen and boost Hong Kong's standing as an international financial center.

In Japan, local shares climbed significantly as the yen continued to weaken prior to the Bank of Japan's policy review. The Nikkei average augmented by 1 percent to 37,438.61, bouncing back from its 2.66 percent fall on Friday, the biggest decrease in over 18 months. The broader Topix index settled 1.38 percent up at 2,662.46, in spite of a tumble in shares of chip-related stocks.

Shares in Seoul also advanced, with the Kospi average up by 1.45 percent at 2,629.44. POSCO Holdings saw a 2.2 percent rise after announcing cost-cutting measures in response to a slowdown in the worldwide steel and battery sectors.

Meanwhile in Australia, the financial and mining sectors spearheaded a rise in the market. Ahead of pivotal inflation data to be released on Wednesday, the S&P ASX 200 index climbed 1.08 percent to 7,649.20. The broader All Ordinaries index also experienced a 1.08 percent gain, closing at 7,902.

In New Zealand, the benchmark S&P NZX-50 index went up by 0.48 percent, closing at 11,852.80.

Meanwhile, US stocks had mixed results on Friday. Tech stocks took a hit due to Netflix's less than satisfactory revenue outlook. The tech-heavy Nasdaq Composite plummeted by 2.1 percent and the S&P 500 dropped by 0.9 percent, marking its sixth consecutive session of decline. However, the Dow Jones rose by 0.6 percent, driven by financials and consumer staple stocks.