After days of heated rhetoric between North Korea and President Donald Trump, Pyongyang dialed back the political tensions on Tuesday, with North Korean state media saying Kim Jong Un had decided not to fire missiles at U.S. territory.
Asia’s stock gains Tuesday were followed by strong rebounds in Europe and the U.S. as well, with the S&P 500 logging its biggest one-day gain since April at 1%.
The stock gains in Asia on Monday and early Tuesday put markets in the region on track to recover losses suffered late last week.
The Benchmark Index of Pakistan Stock Exchange KSE-100 opened positive and currently is trading at 45350.30 with 61 points gain on the Tuesday Morning.
Pakistan Stock Exchange at a Glance
While on Friday, the PSX took a heavy battering on the last day of the week shedding 345.53 points to settle at 45,288.49 points (-0.76%) touching an intraday low of 45,261.25 points.
Investors remained cautious, staying wary of investment in stocks as political uncertainty in the country persists. HBL, PPL, ENGRO, PSO and OGDC were the top laggards and cumulatively moved the index down by 150.62 points.
U.S. stock benchmarks rallied on Monday, as a recent aversion to assets – considered risky on the back of fears about tensions between the U.S. and North Korea – receded somewhat. The Dow Jones Industrial Average DJIA, +0.62% closed up by 0.6% to end at 21,993.
Improved risk appetite also added to downward pressure on gold.
The metal, which is considered a haven in times of uncertainty, ended a three-session streak of gains on Monday and London spot prices was recently down 0.5%. Bond yields were also slightly higher as investors moved into riskier assets.
South Korean markets were closed for Independence Day and Japan’s Nikkei NIK, +1.30% led the gains in Asia with a 1.4% rise after a 1% drop on Monday. Tokyo stocks were also boosted by a pullback in the yen as the dollar JPYUSD, -0.571372% moved back above the psychologically-important ¥110 level.
Still, worries over North Korea was capping the yen’s strength.
In Taiwan, the headline Taiex index Y9999, +0.78% was up 1%, after having lost as much Monday, lifted by major tech companies which were seeing gains in excess of 1%.
Elsewhere, Australia’s S&P/ASX 200 XJO, +0.46% climbed 0.7% with strength in the country’s big banks, which have a heavy weighting in the index, following more upbeat earnings news. New Zealand’s NZX-50 NZ50GR, +0.58% gained 0.8% and looked poised to set another record closing high.