US-Iran Tensions Ease, Boosting Asian Stocks Ahead of Fed Decision

Asian stocks rose on Monday as tensions between the US and Iran eased, following a pause in strikes against Iran that had driven up oil prices.

The Brent crude price fell by as much as 7.4 percent to below $90 a barrel before paring losses, while MSCI's Asia-Pacific equities gauge rose 0.4 percent.

The US dollar weakened against most of its Group-of-10 peers as tensions eased, and treasuries gained along with government bonds in Australia and New Zealand.

Shoji Hirakawa, chief global strategist at Tokai Tokyo Intelligence Lab, said a resolution to the conflict would be positive for markets.

The pause in hostilities has set the tone for a pivotal week in markets, with traders focused on whether the Federal Reserve will raise interest rates and investors awaiting earnings from megacap technology companies like Microsoft and Meta Platforms.