Mumbai: Most indices in Asia gained Monday as market participants appeared to cheer US President Donald Trump's 'Project Freedom' to free stranded ships in the Strait of Hormuz, even as details of the plan are awaited. Brent Crude oil futures also fell around 4% from Friday's high to under $110 per barrel. South Korea's benchmark KOSPI hit a fresh record high, with the index up almost 4% in early trade.
Markets in Japan and China were closed for a public holiday. "I have told my Representatives to inform them that we will use best efforts to get their Ships and Crews safely out of the Strait. In all cases, they said they will not be returning until the area becomes safe for navigation and everything else. This process, Project Freedom, will begin Monday morning, Middle East time," Trump said in a post on social media platform Truth Social.
However, concerns about the adverse impact of high energy prices and global supply chain disruptions on economic health persist for central banks. A senior deputy governor at the Bank of Korea said that a hawkish view is likely at the upcoming monetary policy meeting this month, Reuters reported.
Deputy Governor Ryoo Sang-dai said it was time to consider interest rate hikes. On Friday, the Japanese yen strengthened by over 3% against the dollar. The move came after the government took measures to prop up the currency, media reports suggested. Earlier in the previous week, Japan's finance minister had flagged concerns about the yen's depreciation and hinted at taking action to curb its weakness.
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