Asia Stocks Rally as Iran Tensions Ease, Fed Interest Rate Decision Looms

Asian stocks rose on Monday after the US and Iran refrained from retaliatory strikes, easing concerns over potential disruptions to Middle East energy supplies. The pause in hostilities came as Iranian and Omani officials held talks over shipping through the Strait of Hormuz.

The MSCI's Asia-Pacific equities gauge rose 0.5% led by gains in South Korea and Japan. Brent crude fell as much as 7.4% to below $90 a barrel, before paring losses as the US paused an almost two-week run of strikes against Iran.

Investors are also awaiting earnings from megacap technology companies after a recent backlash against heavy spending on artificial intelligence. The week's key focus will be on whether the US Federal Reserve raises interest rates on Wednesday, with some Fed watchers seeing the possibility of dissents at the meeting.