Asia-Pacific markets opened higher on Tuesday, with Japan’s Nikkei 225 rising 0.2% and South Korea’s Kospi jumping over 2%, despite President Trump’s warning that the U.S.-Iran ceasefire is on “massive life support.” Investors appeared unfazed by geopolitical tensions, focusing instead on the resilience of global equities, which have continued to rally even amid concerns over inflation and rising oil prices.
Market analysts, including GammaRoad Capital Partners’ CIO Jordan Rizzuto, suggest that investors have become conditioned to buy on dips rather than retreat from market volatility. This behavior is supported by structural factors such as increased retail flows into leveraged ETFs and call options, prompting dealers to hedge by purchasing underlying equities.
The key takeaway for market professionals is the ongoing strength in U.S. equity futures, which reflect a broader trend of investor confidence, as evidenced by the S&P 500 and Nasdaq Composite reaching all-time highs. This suggests a market that remains resilient in the face of geopolitical uncertainties.
Source: cnbc.com