Daijiworld Media Network - New Delhi

New Delhi, Apr 19: Global equity markets witnessed a broad-based rally after the reopening of the Strait of Hormuz, with easing geopolitical tensions boosting investor sentiment and triggering a risk-on mood across regions.

In the United States, Wall Street posted strong gains, with the Dow Jones Industrial Average rising about 1.8 per cent, while the S&P 500 and Nasdaq Composite advanced over 1 per cent each. The rally was supported by a sharp decline in oil prices, which eased inflationary concerns.

European markets also ended higher, tracking the global optimism. Germany’s DAX surged around 2.2 per cent, while France’s CAC 40 and Spain’s IBEX 35 gained between 1.9 and 2 per cent. The UK’s FTSE 100 recorded a comparatively modest rise of about 0.7 per cent, weighed down by losses in oil major stocks following the fall in crude prices.

Asian markets, however, showed a mixed trend, reflecting cautious optimism among investors. In India, benchmark indices remained steady, with the Nifty 50 holding above the 24,350 mark and the BSE Sensex closing at 78,493, both registering gains of around 0.6 per cent. The positive sentiment was largely driven by relief for oil-importing economies.

Elsewhere in Asia, Japan’s Nikkei 225 declined 1.75 per cent, while Hong Kong’s Hang Seng Index fell about 0.9 per cent. China’s Shanghai Composite and Australia’s S&P/ASX 200 edged lower by around 0.1 per cent each, indicating profit booking and lingering uncertainty over the sustainability of the ceasefire.

Market experts noted that most Asian indices had closed before Iran’s formal announcement confirming that the Strait was “completely open,” which limited the immediate impact of the development on regional closing figures.