Leant Ting argues Asian equity strength is driven by persistent capex in hardware/AI: big fundraising plans (e.g., SpaceX), institutional research suggesting a chip supercycle, and company-level commentary pointing to rising demand for chip equipment and upward EPS revisions. Currency dynamics (yen weakness) are explained by BOJ-US interest rate differentials, limiting the effectiveness of one-off FX intervention without BOJ policy change. Upcoming MSCI index reviews pose flow risks/opportunities for regional markets.

Jesse Moritz assesses the US-Iran interim peace deal as a temporary measure to avert immediate economic crisis due to declining US strategic petroleum reserves. Risk of Iran transforming toll-free passage into service charges is high. The deal empowers Iranian hardliners rather than leading to regime change. Internal disunity within GCC states emerged, with UAE pushing for aggressive response while Saudi Arabia, Qatar, and Oman sought negotiated end. Iran's nuclear program knowledge remains intact, and regime crackdown on domestic opposition is expected.